German ISP United Internet is mulling a takeover of local alternative telecoms operator Versatel, its CEO has said.
Ralph Dommermuth told Reuters the potential deal is an option it is considering, noting that Germany’s second-largest fibre optic cable…
German ISP United Internet is mulling a takeover of local alternative telecoms operator Versatel, its CEO has said.
Ralph Dommermuth told Reuters the potential deal is an option it is considering, noting that Germany’s second-largest fibre optic cable network does not come up for sale often.
United Internet already has a 25% stake in Versatel, which provides voice, internet and data services and has a fibre network extending about 53,000km throughout Germany.
Reports surfaced in mid-July claiming private equity firm KKR was considering selling its majority stake in the Dusseldorf-based ISP. Vodafone and Telefonica, both big players in Germany, have also been named as potential buyers. German incumbent Deutsche Telekom is considered unlikely to bid because of potential antitrust concerns.
KKR acquired its stake in Versatel from its then three major shareholders, led by private equity firm Apax Partners, in mid-2011 and then completed a buyout of the remaining shares, paying about €240m in total.
Both Vodafone and Telefonica have made relatively recent acquisitions in Germany. Vodafone bought the country’s largest cableco KDG last year as part of its strategy to expand its fixed-line assets in Europe.
And this July, Telefonica’s German unit won clearance from the European Commission to acquire local mobile operator E-Plus for €8.6bn. The deal is expected to close in the third quarter of the year.
