United Internet to take full control of Versatel
German internet service provider United Internet has agreed a deal to buyout equity firm KKR’s 74.9% stake in cable company Versatel for approximately €586 million.
United Internet owns a 25.1% stake in Versatel, which it acquired in 2012, and it is now in the process of taking full control of the company.
United Internet operates Germany’s second-largest fibre-optic network, spanning 37,000km, and the deal will be financed through new loans.
The company said it will pay the fee through a combination of purchase price and repayment of debt.
The acquisition raises United Internet’s customer base to 4.12 million and further solidifies its position as the second-largest provider in the market.
Its network presently reaches 226 cities, including 19 of the 25 largest cities in Germany, and over 5,000 buildings are connected to the network.
United Internet said its plans to strengthen Versatel’s B2B business and will aim to serve more enterprise customers.
The deal is expected to close in October.