KKR snaps up Versatel for EUR240m

19 May 2011

US buyout firm Kohlberg Kravis Roberts & Co (KKR) has announced its intention to acquire all outstanding shares in German fixed line operator Versatel Communications, Reuters reports. Versatel’s shareholders Apax Partners (which owns a 41.67% stake via holding company Vienna II S.a.r.l), United Internet (25.21%) and Cyrte Investments (25.04%) have agreed to sell their shares for EUR5.50 apiece, in a EUR240 million (USD342 million) deal. The remaining shareholders will be offered EUR6.7 per share. United Internet said in a separate statement that during the 17 months following the completion of the deal, it will have the right to acquire all shares in the acquisition vehicle set up by KKR for the Versatal purchase. After that period, United Internet will be entitled to buy 25.1% of the shares in the holding company. United Internet said it also agreed with KKR on a long-term cooperation regarding Versatel. Alain D. Bandle, CEO of Versatel, said the company will continue its current strategy to develop into an infrastructure-based market leader and preferred partner network, with a focus on the German wholesale and B2B telecoms markets. The transaction is set to be completed in the third quarter of 2011, subject to approval from the relevant anti-trust authorities.

Germany, 1&1 Versatel, United Internet