(Bloomberg) — T-Mobile US Inc. is investing $4.9 billion in a joint venture with private equity firm KKR & Co. to buy fiber-optic Internet service provider Metronet.
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The second-largest U.S. wireless carrier will use Metronet’s fiber and digital infrastructure to expand to more homes with fiber broadband services, according to a statement released Wednesday.
Metronet, based in Evansville, Indiana, is owned by Oak Hill Capital and the Cinelli family. KKR has been a minority investor in the company since 2021. Oak Hill will reinvest in the joint venture to maintain a minority position and founder John Cinelli will also maintain a minority stake once the deal closes.
T-Mobile has been challenging the broadband industry by expanding into fiber networks. In April, the company acquired the Lumos fiber optic platform in a joint venture with investment firm EQT AB. T-Mobile offers fiber service in eight states, including California, New York and Illinois.
Metronet’s fiber network reaches more than 2 million homes in 17 states. The company is expected to reach 6.5 million homes by the end of 2030, according to the statement.
“This is a unique opportunity and a smart, capital-efficient deal that allows T-Mobile to profitably build on our success in broadband” and complement the company’s wireless growth strategy, said Mike Sievert, CEO of T-Mobile. Mobile, no declaration.
The transaction is expected to close in 2025, subject to customary closing conditions and regulatory approvals.
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