KKR Acquires Metronet through Joint Venture with T-Mobile, Expanding Fiber Networks Across the US.

KKR has completed its acquisition of Metronet through a joint venture with T-Mobile, expanding fiber-optic networks across the US. Metronet serves over 2.6 million homes and businesses, and the joint venture aims to accelerate fiber expansion in underserved markets. KKR has invested significantly in digital infrastructure, and this acquisition showcases their leadership in this area.

In a significant move to enhance its fiber-optic network presence across the United States, KKR has completed its acquisition of Metronet through a joint venture with T-Mobile. This strategic partnership aims to accelerate the expansion of fiber networks in underserved markets, leveraging Metronet's established infrastructure and T-Mobile's customer base.

Metronet, headquartered in Evansville, Indiana, currently serves over 2.6 million homes and businesses across 19 states, with plans to reach 6.5 million homes by 2030. The joint venture, first announced in July 2024, sees T-Mobile investing approximately $4.9 billion for a 50% equity stake in the joint venture and full ownership of Metronet’s residential fiber retail operations and customer base. Following the transaction’s close, Metronet will transition to a wholesale services provider, focusing on network engineering, design, deployment, and customer installation, while T-Mobile takes charge of residential customer acquisition and support, leveraging its renowned customer service model [2].

KKR, known for its significant investments in digital infrastructure, has invested heavily in this acquisition. The joint venture aims to bring world-class digital infrastructure to underserved communities at an unprecedented pace. Dave Heimbach, CEO of Metronet, expressed optimism about the partnership, stating, “With KKR and T-Mobile, we have best-in-class strategic partners committed to taking our growth to the next level” [2].

This acquisition follows T-Mobile’s earlier 2024 joint venture with EQT to acquire Lumos, another regional fiber provider. Combined, these deals are expected to enable T-Mobile to reach 12 to 15 million homes with fiber internet by 2030, positioning it to compete with industry giants like AT&T and Verizon [2].

References:
[1] https://www.telecomtv.com/content/access-evolution/what-s-up-with-kkr-telecom-italia-fttp-tech-sector-metronet-53514/
[2] https://cordcuttersnews.com/t-mobile-fiber-home-internet-buys-metronet-fiber/