Simpson Thacher is representing global investment firm KKR in its establishment of a joint venture (“JV”) with T-Mobile that will acquire Metronet, including its broadband infrastructure, rapidly growing residential fiber business operations and existing customers. The transaction is expected to close in 2025, subject to customary closing conditions and regulatory approvals. At closing, T-Mobile is expected to invest approximately $4.9 billion to acquire a 50% equity stake in the JV and 100% of Metronet’s residential fiber retail operations and customers, as well as funding of the JV.
Metronet is uniquely positioned as the fastest growing pure play fiber company in the U.S. and an experienced independent fiber-to-the-home (FTTH) operator. The company currently reaches more than 2 million homes and businesses across 17 states with fiber solutions built on a state-of-the art broadband platform. Following the transaction’s close, Metronet will become a wholesale services provider for its retail customers and 100% of its residential fiber retail operations and customers will transition to T-Mobile. Metronet is expected to reach 6.5 million homes passed by the end of 2030.
The Simpson Thacher team includes Breen Haire, Shamus Crosby, David Bumgardner, Mark Kunzman, Braxton Duhon, Christine Robb, Jacob Bryant, Andrew Waldeck and Jack Davis (Corporate); Nancy Mehlman and Shareef Salfity (Tax); Ron Ben-Yehuda, Bobbie Burrows and Riley Morrow (Intellectual Property); David Rubinsky and Linda Barrett (Executive Compensation and Employee Benefits); Toby Chun and Noreen Lavan (Environmental); Krista McManus, Dennis Loiacono, Richard Starik and Yael Golan (Real Estate); Peter Guryan and Jamie Logie (Antitrust); and John Schueller, Brian Steinhardt, Jennifer Albrecht, Marisa Stavenas, Brian Rosenzweig, Constantine Valettas and Angelica Varona (Finance).