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 Business to T-Mobile and KKR for remarks. A T-Mobile spokesperson declined to comment and pointed to T-Mobile’s and Metronet’s press releases about the joint venture.
“This 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,” 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 – a private equity firm that has invested in Metronet since 2014 – and Metronet’s co-founder, John Cinelli, will, however, both reinvest to retain minority stakes in the company.
It was through Oak Hill’s investment that Cinelli met Dave Heimbach, who in October 2023 became Metronet’s new chief executive as Cinelli moved into the executive chairman’s position.
“We started Metronet to bring Main Street USA two things their internet providers weren’t delivering – hyper-fast speeds and warm customer service,” Cinelli said in a July 24 press release. “Today we have found a strong partner in T-Mobile, a digital infrastructure leader equally focused on cutting-edge technology and the customer experience.”
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-Mobile’s 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 “6.5 million homes by the end of 2030.”
