United Internet’s takeover of Versatel given the green light

26 Sep 2014

Germany’s Federal Cartel Office (Bundeskartellamt) has approved United Internet’s takeover of fixed line operator Versatel, without imposing any conditions on the deal, writes Reuters. Earlier this month United Internet, a provider of broadband and telephony services under the brand 1&1, announced the signing of an agreement with private equity firm Kohlberg Kravis Roberts & Co (KKR) to acquire its 74.9% stake in Versatel for around EUR586 million (USD769 million) in cash. United Internet has owned a 25.1% stake in Versatel since late 2012, thus the new acquisition raises the company’s total holding to 100%. With the acquisition of Versatel, United Internet will gain access to Germany’s second largest fibre-optic network, which spans 37,000km and can be accessed in 226 cities, including 19 of the 25 largest cities in the country. Versatel operates approximately 440,000 ADSL and SDSL connections, which when added to the number of xDSL customers in the United Internet Group will bring the total to 4.12 million. On completion of the transaction, Versatel will be fully consolidated as a wholly-owned subsidiary in the financial statements of the United Internet Group.

Germany, 1&1 Versatel, United Internet