Oak Hill and Cinelli Family to Sell Metronet to KKR and T-Mobile Joint Venture
Metronet, a leading independent fiber-to-the-home (FTTH) operator in the U.S., has announced its sale to a joint venture between KKR and T-Mobile. The transaction, expected to close in 2025, will transform Metronet into a wholesale services provider, with T-Mobile taking over residential fiber retail operations. Metronet's network currently reaches over 2 million households across 17 states.
Key points:
- Oak Hill Capital and the Cinelli family, Metronet's majority shareholders, will retain minority investments in the JV
- Metronet will focus on network infrastructure while T-Mobile handles customer acquisition and support
- The company boasts the highest build pace among private fiber companies in the U.S.
- The deal aims to expand fiber broadband services to more U.S. consumers
Metronet, un operatore indipendente leader nella fibra fino alla casa (FTTH) negli Stati Uniti, ha annunciato la sua vendita a una joint venture tra KKR e T-Mobile. La transazione, prevista per chiudersi nel 2025, trasformerà Metronet in un fornitore di servizi all'ingrosso, con T-Mobile che prenderà in carico le operazioni di vendita al dettaglio della fibra residenziale. La rete di Metronet attualmente raggiunge oltre 2 milioni di abitazioni in 17 stati.
Punti chiave:
- Oak Hill Capital e la famiglia Cinelli, azionisti di maggioranza di Metronet, manterranno investimenti di minoranza nella JV
- Metronet si concentrerà su infrastrutture di rete mentre T-Mobile gestirà l'acquisizione e il supporto dei clienti
- L'azienda vanta il ritmo di costruzione più elevato tra le aziende private di fibra negli Stati Uniti.
- Il contratto mira a espandere i servizi di fibra broadband a più consumatori statunitensi
Metronet, un operador independiente líder en fibra hasta el hogar (FTTH) en EE. UU., ha anunciado su venta a una empresa conjunta entre KKR y T-Mobile. La transacción, que se espera que se cierre en 2025, transformará a Metronet en un proveedor de servicios al por mayor, con T-Mobile asumiendo las operaciones de venta al por menor de fibra residencial. Actualmente, la red de Metronet alcanza más de 2 millones de hogares en 17 estados.
Puntos clave:
- Oak Hill Capital y la familia Cinelli, accionistas mayoritarios de Metronet, retendrán inversiones minoritarias en la empresa conjunta
- Metronet se centrará en la infraestructura de red mientras T-Mobile maneja la adquisición y el soporte de clientes
- La compañía cuenta con el ritmo de construcción más alto entre las empresas privadas de fibra en EE. UU.
- Este acuerdo tiene como objetivo expandir los servicios de banda ancha de fibra a más consumidores estadounidenses
메트로넷, 미국의 주요 독립 FTTH(패밀리 투 홈) 제공업체가 KKR와 T-Mobile의 합작투자에 매각된다고 발표했습니다. 2025년에 마감될 것으로 예상되는 이번 거래로 메트로넷은 도매 서비스 제공업체로 전환되며, T-Mobile은 주거용 광섬유 소매 운영을 인수합니다. 현재 메트로넷의 네트워크는 17개 주에서 200만 가구 이상에 도달하고 있습니다.
주요 사항:
- 메트로넷의 주요 주주인 오크 힐 캐피탈과 키넬리 가족은 JV에서 소수 지분을 유지합니다
- 메트로넷은 네트워크 인프라에 집중하고 T-Mobile은 고객 유치 및 지원을 담당합니다
- 회사는 미국의 사설 광섬유 업체 중 가장 빠른 구축 속도를 자랑합니다.
- 이번 거래는 미국 소비자들에게 더 많은 광대역 서비스를 확장하는 것을 목표로 합니다
Metronet, un opérateur indépendant de premier plan dans la fibre jusqu'au domicile (FTTH) aux États-Unis, a annoncé sa vente à une coentreprise entre KKR et T-Mobile. La transaction, qui devrait se clore en 2025, transformera Metronet en fournisseur de services en gros, T-Mobile prenant en charge les opérations de vente au détail de la fibre résidentielle. Le réseau de Metronet atteint actuellement plus de 2 millions de foyers dans 17 États.
Points clés :
- Oak Hill Capital et la famille Cinelli, actionnaires majoritaires de Metronet, conserveront des investissements minoritaires dans la coentreprise
- Metronet se concentrera sur l'infrastructure réseau tandis que T-Mobile gérera l'acquisition et le soutien des clients
- L'entreprise affiche le rythme de construction le plus élevé parmi les entreprises privées de fibre aux États-Unis.
- L'accord vise à étendre les services de fibre large bande à un plus grand nombre de consommateurs américains
Metronet, ein führender unabhängiger Anbieter von Glasfaseranschlüssen bis zum Haus (FTTH) in den USA, hat den Verkauf an ein Joint Venture zwischen KKR und T-Mobile angekündigt. Die Transaktion, die voraussichtlich 2025 abgeschlossen wird, wird Metronet in einen Anbieter von Großhandelsdienstleistungen verwandeln, während T-Mobile die Einzelhandelsangebote für Wohnglasfaser übernehmen wird. Das Netzwerk von Metronet erreicht derzeit über 2 Millionen Haushalte in 17 Bundesstaaten.
Wichtige Punkte:
- Oak Hill Capital und die Familie Cinelli, Mehrheitseigentümer von Metronet, werden Minderheitsbeteiligungen an dem JV behalten
- Metronet konzentriert sich auf die Netzwerk-Infrastruktur, während T-Mobile die Kundengewinnung und -betreuung übernimmt
- Das Unternehmen verfügt über das höchste Baupausen-Tempo unter privaten Glasfaserunternehmen in den USA.
- Mit dem Deal soll das Angebot von Glasfaser-Breitbanddiensten für mehr US-Verbraucher ausgeweitet werden
- Metronet's network reaches over 2 million households across 17 states
- Highest build pace among private fiber companies in the U.S.
- Net Promoter Scores well above industry averages
- Potential for expanded market reach through T-Mobile's retail and marketing capabilities
- Loss of direct control over residential customer relationships
- Transition period may impact short-term operations and customer experience
- Regulatory approvals could delay the transaction closure until 2025
As a financial analyst, this acquisition of Metronet by a joint venture between KKR and T-Mobile is a significant development in the telecommunications industry. Here are key insights:
- The deal represents a major consolidation in the fiber-to-the-home (FTTH) market, with Metronet being the leading independent FTTH operator in the U.S.
- T-Mobile's involvement signals a strategic move to diversify its offerings beyond wireless services, potentially positioning it as a stronger competitor against traditional cable and telecom companies.
- KKR's continued involvement (from minority investor to JV partner) suggests confidence in Metronet's growth potential and the broader FTTH market.
- The transaction structure, with Metronet becoming a wholesale provider and T-Mobile taking over retail operations, could lead to operational efficiencies and improved customer acquisition strategies.
While specific financial terms weren't disclosed, the deal's expected closure in 2025 indicates a complex transaction that may involve regulatory scrutiny. For investors, this move highlights the increasing value of fiber infrastructure in the evolving telecom landscape and may spark further consolidation in the sector.
The retention of Oak Hill and the Cinelli family as minority investors suggests a belief in continued upside potential. However, the long timeline to close also introduces execution risk and potential for market changes before completion.
This acquisition marks a pivotal shift in the U.S. telecom landscape. Here's my analysis of the implications:
- T-Mobile's entry into the fiber market is a game-changer. It allows them to offer a 'quad-play' bundle (wireless, broadband, TV and home phone), potentially increasing customer stickiness and average revenue per user (ARPU).
- Metronet's impressive growth - from 80,000 to over 2 million locations passed in a decade - underscores the demand for high-speed fiber internet in underserved markets.
- The deal leverages each party's strengths: Metronet's fiber expertise and T-Mobile's brand power and customer service reputation (evidenced by Metronet's high Net Promoter Scores).
- This move could pressure other wireless carriers to seek similar fiber partnerships or acquisitions to remain competitive in the evolving connectivity landscape.
The transaction's structure is intriguing. By focusing Metronet on infrastructure and T-Mobile on retail operations, the JV could accelerate fiber deployment while improving customer acquisition efficiency. This model could become a template for future telecom partnerships.
However, the long closing timeline (2025) raises questions about potential regulatory hurdles and how the competitive landscape might shift in the interim. It also gives competitors time to react and potentially make counter-moves in the fiber space.
Joint Venture Will Offer Leading Fiber Solution to More
Metronet’s management team and Oak Hill have worked together for more than 10 years to build Metronet into the leading independent fiber-to-the-home (FTTH) operator in the
“We started Metronet to bring Main Street USA two things their internet providers weren’t delivering—hyper fast speeds and warm customer service,” said John Cinelli, co-founder and current chairman of Metronet. “Today we have found a strong partner in T-Mobile, a digital infrastructure leader equally focused on cutting-edge technology and the customer experience. 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. 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.”
“Our involvement in the Metronet expansion story has been a joyful experience for all of us at Oak Hill—from our first meetings with John Cinelli, Al Cinelli and Lohn Weber in 2010, to our initial investment in the company in 2014, to the decade of remarkable growth we have achieved together since that time. Over the past 10 years, Metronet has expanded its network from 10 small towns in
“Metronet is an amazing American business success story, thanks in large part to Al and John’s entrepreneurial spirit and leadership, and Oak Hill’s support. We are proud of all that Metronet has achieved since we first invested in the Company in 2021, and are thrilled to continue to work with the management team and their associates to build upon the Company’s 20-year legacy. We look forward to embarking on this new chapter with T-Mobile and supporting the Company in its future growth,” said Waldemar Szlezak, Partner and Global Head of Digital Infrastructure at KKR.
The transaction is expected to close in 2025, subject to customary closing conditions and regulatory approvals.
Bank Street Group LLC and TD Securities served as financial advisors to Metronet. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Polsinelli served as legal counsel to Metronet. Lazard served as financial advisor to Oak Hill.
Barclays and Morgan Stanley & Co. LLC are serving as lead financial advisors to KKR, with Goldman Sachs, Mizuho and MUFG also serving as financial advisors. Simpson Thacher is serving as KKR’s legal advisor.
About Metronet
Metronet is PCMag's “Fastest Major ISP” for 2023 and 2024, providing multi-gigabit internet service to homes and businesses in cities like Colorado Springs,
About Oak Hill Capital
Oak Hill is a longstanding private equity firm focused on the
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR) please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Group’s website at www.globalatlantic.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724285262/en/
Media Contacts
Metronet
Scott Shapiro
media@metronet.com
Oak Hill
Nadia Damouni / Kiki O’Keeffe
pro-OakHillCapital@prosek.com
KKR
KKR Media Relations
Media@KKR.com
Source: Metronet
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