T-Mobile’s scalable broadband and wireless growth engine
combined with EQT’s infrastructure expertise will leverage Lumos'
fiber platform to deliver broadband services to more Americans
T-Mobile (NASDAQ: TMUS), America's 5G leader and fastest growing
broadband provider, and EQT, a purpose-driven global investment
organization, today announced they have entered into a joint
venture (JV) with EQT’s Infrastructure VI fund (EQT) that will
acquire fiber-to-the-home platform Lumos from EQT’s predecessor
fund EQT Infrastructure III.
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the full release here:
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T-Mobile and EQT Announce Joint Venture
to Acquire Lumos and Build Out the Un-carrier’s First Fiber
Footprint (Graphic: Business Wire)
The JV will bring T-Mobile’s retail, marketing, brand and
customer experience strengths together with EQT’s fiber
infrastructure investment expertise. Together they will acquire
Lumos’ scalable fiber network build capabilities to deliver
best-in-class high-speed fiber internet connectivity to customers
across the U.S. without access to fiber today. After the
transaction closes, Lumos, which currently reaches 320,000
households over 7,500 route miles with fiber optic internet and
home wi-fi service in the Mid-Atlantic, will transition to a
wholesale model with T-Mobile as the anchor tenant owning customer
relationships and leveraging its brand to attract new subscribers.
The JV will focus on market identification and selection, network
engineering and design, network deployment, and customer
installation.
“As the demand for reliable, low-latency connectivity rapidly
increases, this deal is a scalable strategy for T-Mobile to take a
significant step forward in expanding on our broadband success and
continue shaking up competition in this space to bring even more
value and choice to consumers,” said Mike Sievert, CEO of T-Mobile.
“Together with EQT and Lumos, T-Mobile is building on our position
as the fastest growing broadband provider in the country in a
value-accretive way that complements our sustained growth
leadership in wireless. Customers – homes and businesses – who get
the fast, affordable, and reliable internet they need will be the
real winners.”
T-Mobile provides a unique value proposition and much-needed
reliable connectivity to homes and businesses across the country
through its 5G Internet, a fixed wireless internet service on its
5G network that is available to more than 50 million households and
businesses nationwide and serves over 5 million customers, as well
as T-Mobile Fiber, which has launched in parts of 16 U.S. markets.
Those launches have shown consumer demand for broadband that
T-Mobile cannot meet through its fallow capacity fixed wireless
product alone, and many customers want the speed and reliability
that only fiber can provide.
Jan Vesely, Partner within EQT’s Infrastructure Advisory Team
said, “We are proud to have partnered with Lumos over the past six
years to rapidly scale the company and roll out fiber to
underserved markets, and we look forward to continuing to leverage
EQT’s considerable digital infrastructure and fiber expertise to
support the significant fiber buildout ambitions of T-Mobile and
the JV. This new effort will build critical fiber broadband
infrastructure that will enable remote work, education, and
healthcare use cases across the country. We have worked with
T-Mobile as a customer across many of our existing digital
infrastructure investments and are delighted to build on that
relationship and partner with T-Mobile on this opportunity to roll
out fiber to underserved Americans.”
“Lumos takes great pride in our achievements, as we have
successfully delivered fiber to hundreds of thousands of homes and
businesses, marking a significant acceleration in our growth. Our
commitment to enhancing customers’ lives through the development of
a network prepared for the demands of tomorrow remains steadfast,”
Brian Stading, CEO of Lumos. “With the support of our private
equity partner, EQT, and leveraging the strength of the T-Mobile
brand and unrivaled customer experience, Lumos is set to expedite
our network expansion. This joint venture will amplify our ability
to change lives through the transformative power of fiber optic
internet.”
The transaction is expected to close in late 2024 or early 2025,
subject to customary closing conditions and regulatory approvals.
At closing, T-Mobile is expected to invest approximately $950
million in the JV to acquire a 50% equity stake and all existing
fiber customers, with the funds invested by T-Mobile being used by
Lumos for future fiber builds. The next capital contribution by
T-Mobile out of an additional commitment of approximately $500
million is anticipated between 2027 and 2028. These combined
investments are expected to allow Lumos to reach 3.5 million homes
passed by the end of 2028. T-Mobile continues to expect to complete
its remaining authorization for share repurchases and dividends in
2024.
With this transaction, EQT Infrastructure VI is expected to be
35-40% percent invested (including closed and/or signed
investments, announced public offers, if applicable, and less any
expected syndication) based on target fund size and subject to
customary regulatory approvals.
Cautionary Statement Regarding Forward-Looking
Statements
This communication contains certain forward-looking statements
concerning T-Mobile and the proposed transaction with EQT to
acquire regional fiber company Lumos. All statements other than
statements of fact, including information concerning future
results, are forward-looking statements. These forward-looking
statements are generally identified by the words “plan,”
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,”
“could” or similar expressions. Such forward-looking statements
include, but are not limited to, statements about the benefits of
the proposed transaction, including anticipated future financial
and operating results, T-Mobile’s and the joint venture’s
objectives, expectations and intentions, the accounting treatment
of the proposed transaction, and the expected timing of completion
of the proposed transaction. There are several factors which could
cause actual plans and results to differ materially from those
expressed or implied in forward-looking statements. Such factors
include, but are not limited to, the failure to satisfy any of the
conditions to the proposed transaction on a timely basis or at all;
the occurrence of events that may give rise to a right of one or
both of the parties to terminate the definitive agreements; adverse
effects on the market price of T-Mobile’s common stock and on
T-Mobile’s operating results because of a failure to complete the
proposed transaction in the anticipated timeframe or at all;
negative effects of the pendency or consummation of the proposed
transaction on the market price of T-Mobile’s common stock and on
T-Mobile’s operating results; the risk of litigation or regulatory
actions; and other risks and uncertainties detailed in T-Mobile’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2023, including in the sections thereof captioned “Risk Factors”
and “Cautionary Statement Regarding Forward-Looking Statements,” as
well as in its subsequent reports on Form 8-K and Form 10-Q, all of
which are filed with the SEC and available at www.sec.gov and
www.t-mobile.com. Forward-looking statements are based on current
expectations and assumptions, which are subject to risks and
uncertainties that may cause actual results to differ materially
from those expressed in or implied by such forward-looking
statements. Given these risks and uncertainties, persons reading
this communication are cautioned not to place undue reliance on
such forward-looking statements. T-Mobile assumes no obligation to
update or revise the information contained in this communication
(whether as a result of new information, future events or
otherwise), except as required by applicable law. References to our
and the SEC’s website are inactive textual references only.
Information contained on our and the SEC’s website is not
incorporated by reference in this communication and should not be
considered to be a part of this communication.
Legal Disclaimer
The information contained herein does not constitute an offer to
sell, nor a solicitation of an offer to buy, any security, and may
not be used or relied upon in connection with any offer or
solicitation. Any offer or solicitation in respect of EQT
Infrastructure VI will be made only through a confidential private
placement memorandum and related documents which will be furnished
to qualified investors on a confidential basis in accordance with
applicable laws and regulations. The information contained herein
is not for publication or distribution to persons in the United
States of America. Any securities referred to herein have not been
and will not be registered under the U.S. Securities Act of 1933,
as amended (the “Securities Act”), and may not be offered or sold
without registration thereunder or pursuant to an available
exemption therefrom. Any offering of securities to be made in the
United States would have to be made by means of an offering
document that would be obtainable from the issuer or its agents and
would contain detailed information about the issuer of the
securities and its management, as well as financial information.
The securities may not be offered or sold in the United States
absent registration or an exemption from registration.
Advisors
Citigroup Global Markets Inc. is serving as T-Mobile’s exclusive
financial adviser for the transaction. The Bank Street Group and
Simpson Thacher & Bartlett LLP were exclusive advisors to Lumos
and EQT Infrastructure III for the transaction. Kirkland &
Ellis LLP, JPMorgan, and Goldman Sachs & Co. LLC advised EQT
Infrastructure VI for the transaction.
About T-Mobile
T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged
Un-carrier, delivering an advanced 4G LTE and transformative
nationwide 5G network that will offer reliable connectivity for
all. T-Mobile’s customers benefit from its unmatched combination of
value and quality, unwavering obsession with offering them the best
possible service experience and undisputable drive for disruption
that creates competition and innovation in wireless and beyond.
Based in Bellevue, Wash., T-Mobile provides services through its
subsidiaries and operates its flagship brands, T-Mobile, Metro by
T-Mobile and Sprint. For more information please visit:
https://www.t-mobile.com
About EQT
EQT is a purpose-driven global investment organization with EUR
242 billion in total assets under management (EUR 132 billion in
fee-generating assets under management), within two business
segments – Private Capital and Real Assets. EQT owns portfolio
companies and assets in Europe, Asia-Pacific and the Americas and
supports them in achieving sustainable growth, operational
excellence and market leadership. More info: www.eqtgroup.com.
Follow EQT on LinkedIn, X, YouTube and Instagram.
About Lumos
Lumos provides 100% Fiber Optic Internet, whole-Home Wi-Fi,
voice and streaming services, to more than 300,000 homes and
businesses across Virginia, North Carolina, and South Carolina. We
believe that the possibilities of tomorrow cannot be built on the
infrastructure of yesterday. That’s why we’re building a 100% Fiber
Optic network from the ground up for families, businesses, and
communities, backed by local, expert customer service. An Internet
built for that most hopeful of all things – the future. Because
whatever the future holds, we make it faster. Learn more at
www.LumosFiber.com.
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T-Mobile US, Inc. Media Relations
MediaRelations@t-mobile.com
T-Mobile Investor Relations Contact
investor.relations@t-mobile.com https://investor.t-mobile.com
EQT Press Office press@eqtpartners.com
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