United Internet to Buy Deutsche Telekom's Strato for About EUR600 Million
December 15 2016 - 3:47AM
Dow Jones News
By Natascha Divac
FRANKFURT--Germany's United Internet AG has agreed to buy
Deutsche Telekom AG's web hosting unit Strato for about 600 million
euros ($630 million), both companies said Thursday.
Deutsche Telekom acquired the hosting services provider for
EUR275 million in 2009. Based in Berlin, Strato employs more than
500 people with operations mainly in Germany and the
Netherlands.
The sale is part Deutsche Telekom's strategy of "increasing the
value of business areas that can no longer be adequately developed
within the group" through partnerships or disposals, it said.
Strato's products include domains, e-mail packages, website
packages, web shops, servers, online storage and individual
high-end hosting.
The unit is expected to post 2016 revenue of around EUR127
million.
United Internet said it plans to acquire Strato through a
holding structure in which private-equity firm Warburg Pincus will
hold a stake.
The transaction is awaiting approval by the German Federal
Cartel Office. It is expected to close in the first half of
2017.
Write to Natascha Divac at natascha.divac@wsj.com
(END) Dow Jones Newswires
December 15, 2016 03:32 ET (08:32 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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