03:26 PM EDT, 07/24/2024 (MT Newswires) -- T-Mobile US ( TMUS ) said Wednesday it agreed to form a joint venture with investment firm KKR (KKR) that will acquire fiber company Metronet, as the wireless carrier looks to expand its broadband portfolio.

T-Mobile expects to invest roughly $4.9 billion at closing to acquire a 50% equity interest in the joint venture and Metronet's entire residential fiber retail operations and customers, the company said. Metronet's network spans more than 2 million homes and businesses across 17 US states, T-Mobile said.

"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," T-Mobile Chief Executive Mike Sievert said in a statement.

The company will have full responsibility for residential customer acquisition and support, it said, adding that it doesn't expect to make any additional capital contributions to the joint venture.

"With this new partnership, Metronet will expand its fiber network faster and farther, reaching millions more households by the end of the decade," Metronet CEO Dave Heimbach said. Following the deal's closing, Metronet will become a wholesale services provider for its retail customers and is projected to reach 6.5 million homes passed by the end of 2030, T-Mobile said.

KKR will invest in Metronet through its global infrastructure strategy. The firm initially invested in the business in 2021, said Waldemar Szlezak, global head of digital infrastructure at KKR.

As part of the deal, the joint venture will also buy Oak Hill Capital's existing stake in Metronet, according to a statement. An affiliate of Oak Hill will make a minority investment in the JV while the Cinelli family will remain minority investors in the venture, according to a separate joint statement.

In May, T-Mobile agreed to acquire substantially all of US Cellular's (USM) wireless operations in a deal worth about $4.4 billion.

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