T-Mobile and KKR to acquire Metronet

The JV will acquire Metronet and its broadband infrastructure, residential fibre business operations and customer base, as well as Oak Hill Capital’s existing stake. Oak Hill Capital will re-invest to retain a minority position.

Metronet currently reaches around 2 million homes and businesses across 17 states in the US. Following the purchase, it will become a wholesale services provider for its retail customers and all of its residential fibre retail operations and customers will be moved over to T-Mobile.

After that Metronet will focus on build plans, network engineering and design, network deployment, and customer installation, and is expected to reach 6.5 million homes passed by the end of 2030. 

“This is a unique opportunity and a smart, capital-efficient deal that enables T-Mobile to profitably build on our success in broadband and provide fast, affordable and reliable connectivity options to millions more customers nationwide as a complement to our wireless growth strategy,” said Mike Sievert, CEO of T-Mobile.

“Metronet is the perfect partner for T-Mobile as a leader in fibre solutions with an incredibly fast build pace, and a top-notch management team. Together with KKR’s strong heritage of corporate partnership and global fibre franchise, we will further expand the Un-carrier’s fibre footprint and deliver real value and choice to customers while addressing a growing demand for fast and reliable broadband."

Metronet CEO Dave Heimbach added: "We could not be prouder to expand our strategic partnership with KKR and form a new one with T-Mobile — two global leaders in 5G wireless connectivity and digital infrastructure. Metronet’s 100% fibre network delivers symmetrical multi-gigabit internet service directly to homes and businesses, perfectly complementing T-Mobile’s industry-leading 5G mobile and fixed-wireless offerings to meet consumer demand for seamless, ubiquitous connectivity. With this new partnership, Metronet will expand its fibre network faster and farther, reaching millions more households by the end of the decade."

The transaction, which T-Mobile is expecting to throw around $4.9 billion at, is expected to close in 2025, subject to usual regulatory bits and bobs.