T-Mobile US, Inc. (NASDAQ:TMUS) signed a deal with KKR & Co. Inc. (NYSE:KKR) to form a joint venture (JV) that will acquire Metronet's broadband infrastructure, residential fiber operations, and customer base.

At closing, T-Mobile plans to invest about $4.9 billion for a 50% stake in the joint venture, acquiring Metronet's residential fiber operations and customers, and funding the JV.

Metronet serves over 2 million homes and businesses across 17 states with its advanced fiber-to-the-home (FTTH) platform.

The JV will also acquire Oak Hill Capital's stake, with Oak Hill re-investing to maintain a minority position and founder John Cinelli retaining a minority stake post-closure.

The JV will enhance T-Mobile's 5G Home Internet, which already serves 5 million households, and its fiber partnerships, meeting rising demand for faster, reliable broadband.

The transaction is set to close in 2025, pending standard closing conditions and regulatory approvals.

Post-deal closure, Metronet will become a wholesale provider, and T-Mobile will take over its residential fiber operations and customers.

Moreover, Metronet will be self-funding and aims to reach 6.5 million homes by 2030, with no further capital contributions expected from T-Mobile.

Mike Sievert, CEO of T-Mobile, said, "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. 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."

Investors can gain exposure to the stock via Invesco BuyBack Achievers ETF (NASDAQ:PKW) and Simplify Exchange Traded Funds Simplify Next Intangible Value Index ETF (BATS:NXTV).

Also Read: T-Mobile's Game-Changing $4.4 Billion Deal With U.S. Cellular Sets New Record Highs

Price Action: TMUS shares are down 0.25% at $176.12 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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