T-Mobile (TMUS.US) invested $4.9bn to buy Metronet, an internet services provider, in a joint venture with KKR

T-Mobile US(TMUS.US) will invest $4.9bn with private equity firm KKR&Co.(KKR.US) to form a joint venture to acquire broadband internet service provider Metronet.

The second-largest US wireless carrier will use Metronet’s digital and fixed-line infrastructure to extend its fixed-line broadband services to more households, according to a Wednesday statement.

Metronet, based in Evansville, Indiana, is owned by Oak Hill Capital and the Cinelli family. KKR has been a minority shareholder in the company since 2021. Oak Hill will reinvest in the joint venture to retain a minority stake, and founder John Cinelli will also retain a minority stake once the deal closes.

T-Mobile has been challenging the broadband industry by expanding its fixed-line network. In April, the company partnered with investment firm EQT AB to buy fixed-line broadband provider Lumos. T-Mobile provides fixed-line services in eight states, including California, New York and Illinois.

Metronet’s fixed-line network covers more than 2m households in 17 states. The company expects to cover 6.5m households by the end of 2030, according to the statement.

“This is a unique opportunity and a smart, capital-efficient transaction that allows T-Mobile to extend our success in broadband and complement our wireless growth strategy,” said Mike Sievert, chief executive of T-Mobile, in a statement.

The deal is expected to close in 2025, subject to customary closing conditions and regulatory approvals.