DGAP-Adhoc

United Internet acquires 100% of Versatel shares

United Internet AG / Key word(s): Acquisition

03.09.2014 06:18

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Montabaur, September 3, 2014. United Internet AG today signed an agreement
with the private equity company Kohlberg Kravis Roberts & Co. L.P.
(referred to collectively with its affiliates as "KKR") to acquire the
74.9% of shares in Versatel GmbH, Berlin held indirectly by funds managed
by KKR and thus to raise its holding of Versatel shares to 100%. The share
purchase is to be effected via a complete takeover of Versatel's holding
company VictorianFibre Holding Beteiligungs-GmbH, Düsseldorf, Germany.

United Internet has held an indirect stake in Versatel of 25.1% since the
end of 2012. For the remaining 74.9% of shares, United Internet will pay
around EUR 586 million in cash. The purchase price and repayment of the
Versatel Group's existing net bank liabilities of EUR 361 million is to be
financed by new loans.

In cooperation with staff and KKR, the current Versatel management team has
developed a profitable company over the past few years. This positive trend
was also accompanied by United Internet via the company's Advisory Board.
For the fiscal year 2014, the Management Board expects revenues of approx.
EUR 548 million (prior year: EUR 547 million) and an EBITDA result of
approx. EUR 164 million (prior year: EUR 155 million). Free cash flow is
expected to be around EUR 79 million (prior year: EUR 75 million).

With the acquisition of Versatel, United Internet will gain access to
Germany's second-largest fiber-optic network with a length of around 37,000
km. It can be accessed in 226 cities, including 19 of the 25 largest cities
in Germany.

Over 5,000 locations (companies, institutions etc.) are directly connected
to Versatel's fiber-optic network. In addition, Versatel operates approx.
440,000 ADSL and SDSL connections - which raises the number of DSL
customers in the United Internet Group to a total of 4.12 million. United
Internet will thus strengthen its market position as Germany's
second-largest DSL provider after Deutsche Telekom (12.36 million broadband
connections).

Versatel's current management team will continue to head the company on its
own. The Versatel brand will be retained and the company's B2B business is
to be expanded further. In addition, corporate clients are also to be
gained in future via the United Internet brand 1&1. Due to its many years
of market leadership in webhosting, 1&1 has a strong standing with small to
mid-size companies and freelancers.

United Internet is also planning to source DSL pre-services produced by
Versatel in future and thus save up to approx. EUR 55 million per year. The
planned investments for the years up to 2019 - especially for the expansion
of Versatel's DSL infrastructure - are likely to total approx. EUR 145
million.

The share purchase with economic effect on July 1, 2014 is subject to the
usual approval procedures of the relevant anti-trust authorities. The
transaction is expected to be closed in October 2014.

The carrying value of the 25.1% stake in Versatel currently held by United
Internet is EUR 66 million at present. On completion of the transaction,
Versatel will be fully consolidated as a wholly-owned subsidiary in the
financial statements of the United Internet Group. After taking transaction
costs into account, the accounting changes will lead to one-off, non-cash
income of approx. EUR 100 million in fiscal year 2014.



Contact:
Maika-Alexander Stangenberg
Head of Corporate Communications & Public Affairs
United Internet AG
Elgendorfer Strasse 57
56410 Montabaur
Germany
Tel: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: www.united-internet.de


03.09.2014 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: United Internet AG
Elgendorfer Straße 57
56410 Montabaur
Germany
Phone: [phone] / 96 - 1100
Fax: [phone] / 96 - 1013
E-mail: [e-mail]
Internet: www.united-internet.de
ISIN: DE0005089031
WKN: 508903
Indices: TecDAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard);
Freiverkehr in Düsseldorf, Hamburg, Hannover, München,
Stuttgart

End of Announcement DGAP News-Service

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