KKR, T-Mobile Form JV to Broaden Fiber Offerings with Metronet Acquisition

T-Mobile and KKR have formed a joint venture to buy Evansville, IN-based Metronet, an independent fiber-to-the-home operator, from Oak Hill Capital and the Cinelli family.

T-Mobile will invest roughly $4.9 billion for a 50% ownership in the joint venture and entire management of Metronet’s residential fiber retail business while also providing capital for the JV. KKR’s investment was not disclosed. The transaction is slated to close in 2025.

Bellevue, WA-based T-Mobile is already in the midst of a $4.4 billion deal to expand its wireless offerings by acquiring US Cellular. T-Mobile said the joint venture will allow the carrier to serve Metronet’s two million customers in 17 states while Metronet operates as a wholesale provider. Metronet is expected to reach approximately 6.5 million customers by 2030.

KKR is already a minority investor in Metronet. Oak Hill Capital and the family of founder John Cinelli will retain minority stakes in the joint venture.

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

KKR is investing in Metronet as part of its global infrastructure strategy. The firm launched its strategy in 2008 and has since become one of the world’s most active infrastructure investors, managing more than $61 billion in infrastructure assets.

Oak Hill and T-Mobile have been busy in the fiber space. Omni Fiber, another Oak Hill portfolio business, received $150 million in debt funding from Stonepeak Credit earlier this month to extend its network, which already serves over 25 locations in Ohio and Pennsylvania. Oak Hill co-founded Omni Fiber in 2022 in partnership with the Cincinnati-based company’s management team.

In April, T-Mobile partnered with EQT’s Infrastructure VI fund to purchase fiber platform Lumos from EQT’s predecessor fund for an unknown sum.