T-Mobile joint venture to acquire Metronet in Evansville
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
Evansville-based fiber internet service provider Metronet will soon be under new ownership. The company said Wednesday that it, along with majority shareholders Oak Hill Capital and the Cinelli family, has entered into an agreement to be acquired by a joint venture between T-Mobile and New York-based investment firm KKR.
While the purchase price was not disclosed, a joint news release from T-Mobile and KKR said T-Mobile is expected to invest approximately $4.9 billion to acquire a 50% equity stake in the joint venture and 100% of Metronet’s residential fiber retail operations and customers, as well as funding of the joint venture.
Metronet is an independent fiber-to-the-home operator that has grown its network to more than 2 million households across 17 states.
After the acquisition closes, Metronet said it will become a wholesale services provider for its retail customers, focusing on build plans, network engineering and design, network deployment, and customer installation. Meanwhile, 100% of its residential fiber retail operations will transition to T-Mobile.
“T-Mobile will have full responsibility for residential customer acquisition and support, leveraging its differentiated retail, marketing, brand and service model, and will utilize Metronet’s deep digital and fiber infrastructure expertise to expand to more households with fiber broadband services,” the company said in a news release.
KKR has been a minority investor in the company since 2021, and Metronet co-founder and Chairman John Cinelli said they have found a strong partner in T-Mobile.
“We could not have grown so far, so quickly, to reach this moment without the decade-long support of Oak Hill Capital and, for the last three years, KKR,” Cinelli said. “Their visionary support, together with our hardworking associates, have provided the capital and energy to build the best fiber-to-the-home company in the U.S.”
Metronet currently has 2,500 employees nationwide, and a spokesperson told Inside INdiana Business that for now, it will be “business as usual as we work to complete the transaction and secure the necessary approvals.”
Metronet said an affiliate of Oak Hill Capital will make a minority investment in the joint venture, while the Cinelli family will remain minority investors alongside KKR and T-Mobile.
“Over the past 10 years, Metronet has expanded its network from 10 small towns in Indiana to over 300 communities across a 17-state footprint, and from 80,000 locations passed to more than 2 million, all while maintaining an unwavering commitment to providing an outstanding experience for its loyal customers and dedicated associates,” said Benjy Diesbach, senior operating advisor, and Scott Baker, managing partner of Oak Hill. “We are extremely grateful for the contributions of each of the talented executives with whom we have worked so closely over the years, and we remain excited about Metronet’s future potential with T-Mobile and KKR.”
The acquisition is expected to close in 2025, pending regulatory approvals and customary closing conditions.