DÜSSELDORF, Germany--(BUSINESS WIRE)--
United Internet AG ("United Internet"), the leading German and European
internet services company, has announced the signing of a binding
agreement to acquire 74.9 per cent of shares in Versatel GmbH
("Versatel"), held by KKR, for a total enterprise value of EUR 1.25bn.
Together with the 25.1 per cent stake which it already holds, United
Internet will raise its holding of Versatel shares to 100 per cent.
KKR originally invested in Versatel in July 2011. Jointly with United
Internet, the company was taken private and over the last three years,
has been developed into the leading alternative fibre operator in
Germany, the largest telecommunications market in Europe.
Henrik Kraft, Member and head of KKR Europe's technology &
telecommunications team, commented: "Our investment in Versatel has been
driven by the conviction that the data revolution creates a large
structural investment opportunity. The demand in bandwidth for
business-to-business purposes and the need to connect mobile base
stations with fibre are growing rapidly. Based on that conviction, we
have built Versatel's unique and dense fibre network, with a presence in
19 of the 25 largest German cities. During our investment we have
enjoyed a close working relationship with the management of Versatel and
a strong partnership with United Internet. We are pleased that Versatel
will have the opportunity to continue its successful development under
the ownership of United Internet."
Johannes Huth, Member and head of KKR's operations in Europe, Africa and
the Middle East, said: "The investment in Versatel combined our
capability in the local German market with our global sector expertise
in technology and telecommunications. The repeated and strong interest
from strategic investors in our portfolio companies, as with BMG, WILD
Flavors, Avincis, and now Versatel, is a strong endorsement of the
growth thesis that we pursue in our investments."
The Versatel transaction is subject to customary closing conditions and
- Ends -
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world-class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com.
About United Internet AG
With 13.87 million fee-based customer contracts and 31.44 million
ad-financed free accounts, United Internet AG is Europe's leading
internet specialist. At the heart of United Internet is a
high-performance "Internet Factory" with 6,700 employees, of which
around 2,000 are engaged in product management, development and data
centers. In addition to the high sales strength of its established
brands (1&1, GMX, WEB.DE, united-domains, Fasthosts, arsys, InterNetX,
Sedo and affilinet), United Internet stands for outstanding operational
excellence with around 45 million customer accounts worldwide.
Versatel is one of the leading providers of data, internet and voice
services in Germany. Based on the second largest fibre network in
Germany and its high-performance infrastructure, Versatel offers
business customers comprehensive and tailored telecommunication
solutions. The company is present in more than 220 German cities
nationwide with own infrastructure, and with just under a thousand,
highly qualified employees. Versatel guarantees maximum security and
highest quality - connected with professional consulting and regional
proximity to customers. Telecommunication made in Germany - unique by
Versatel. For additional information, please visit Versatel's website at www.versatel.de.
Phone: +49(0)69 92187487
Phone: +44(0)20 72513801
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