From its home base in Evansville, Metronet has grown from a small family-owned business into a multi-regional powerhouse, providing high-speed fiber internet to more than 220 communities across 17 states. Its rapid expansion and potential have now caught the eye of an industry leader: T-Mobile.
On July 24, T-Mobile and KKR, a global investment firm, announced plans to purchase Metronet through a joint venture. Previously owned by majority shareholders Oak Hill Capital and the Cinelli family, Metronet is changing hands for around $10 billion.
A representative for Metronet referred Evansville Businessย to T-Mobile and KKR for remarks. A T-Mobile spokesperson declined to comment and pointed to T-Mobileโs and Metronetโs press releases about the joint venture.
โThis is a unique opportunity and a smart, capital-efficient deal that enables T-Mobile to profitably build on our success in broadband and provide fast, affordable, and reliable connectivity options to millions more customers nationwide as a complement to our wireless growth strategy,โ CEO of T-Mobile Mike Sievert said in a July 24 press release.
As part of the definitive agreement, T-Mobile would hold a 50 percent stake, with KKR holding the other half of the company’s shares following the transaction’s completion, which is slated for 2025. Oak Hill Capital โ a private equity firm that has invested in Metronet since 2014 โ and Metronetโs co-founder, John Cinelli, will, however, both reinvest to retain minority stakes in the company.
It was through Oak Hillโs investment that Cinelli met Dave Heimbach, who in October 2023 became Metronetโs new chief executiveย as Cinelli moved into the executive chairmanโs position.
โWe started Metronet to bring Main Street USA two things their internet providers werenโt delivering โ hyper-fast speeds and warm customer service,โ Cinelli said in a July 24 press release. โToday we have found a strong partner in T-Mobile, a digital infrastructure leader equally focused on cutting-edge technology and the customer experience.โ
Metronet, which built its first fully fiber-optic network in 2005, now connects more than two million homes and businesses. In 2023, PCMag named Metronet the fastest major internet service provider in the United States, and Cablefax recognized Metronet as the Fiber Provider of the Year.
Following an initial investment from KKR in 2021, the investment firm saw rapid expansion from Metronet in the following years, prompting its partnership with T-Mobile to purchase the company outright.
T-Mobileโs press release says the company sees Metronet as complementary to its current 5G Home Internet service and will look to continue expanding, with expectations of reaching โ6.5 million homes by the end of 2030.โ
