08.11.2016
United Internet AG DE0005089031
DGAP-Adhoc: United Internet AG: Warburg Pincus acquires stake in United Internet's 'Business Applications' division as part of strategic partnership
United Internet AG / Key word(s): Strategic Company Decision
08.11.2016 16:21
Disclosure of an inside information according to Article 17 MAR,
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, November 8, 2016. United Internet AG and WP XII Venture Holdings
S.a.r.l., an affiliate of private equity funds managed by Warburg Pincus
LLC (collectively "Warburg Pincus"), today signed an agreement regarding a
33.33% stake of Warburg Pincus in the United Internet division Business
Applications.
The transaction values the business currently pooled by United Internet
within the company 1&1 Internet SE at EUR 2.55 billion. This corresponds to
approx. 12.5 times the division's planned EBITDA result for fiscal 2016.
The "Business Applications" division pooled under 1&1 Internet SE (part of
the overall "Applications" segment of United Internet) comprises the
hosting business with domains, home pages, webhosting, servers and e-shops,
professional e-mail solutions, online storage and marketing tools. 1&1
Business Applications products are targeted at freelancers and SMEs in
numerous European countries (Germany, France, UK, Italy, Austria, Poland,
Spain) as well as North America (Canada, Mexico, USA). The "Business
Applications" division also comprises the foreign companies belonging to
1&1 Internet SE as well as all subsidiaries (e.g. Fasthosts, Arsys,
home.pl, InterNetX, united-domains and Sedo) and the respective service
companies.
The investment of Warburg Pincus will be made via a holding company still
to be founded. A purchase price of up to EUR 450 million has been agreed
for the 33.33% stake of Warburg Pincus. This is based on the division's
equity value of EUR 1.35 billion. This corresponds to the division's
enterprise value after deducting internal loan receivables of United
Internet AG totaling EUR 1.20 billion which arose from United Internet's
transfer of the business to the new structure and are subject to standard
market interest rates. A partial amount of approx. EUR 334 million is
expected in the first half of 2017. A further amount of up to EUR 116
million will be paid at later stages subject to certain performance
milestones and foreign exchange rate movements.
After closing the transaction, United Internet AG will remain the majority
shareholder with a 66.67% stake in the newly founded holding company and
will continue to fully consolidate its Business Applications division in
its annual and quarterly financial statements.
As part of its strategic partnership, Warburg Pincus will support the
current management team of the "Business Applications" division. To this
end, Mr. René Obermann, Managing Director of Warburg Pincus International
LLC, will join the Supervisory Board of the Business Applications division.
The common goal of the partnership is to extend the division's market
leadership in Europe with top-quality and innovative webhosting products
and cloud applications, as well as first-class customer service Warburg
Pincus will contribute its global market expertise and its access to
industry experts with regard to the organic growth, the development of new
and innovative products and services, as well as potential future
acquisitions and mergers.
The transaction offers 1&1 Internet SE flexibility with regard to future
strategic options, including a potential IPO in the coming years.
The transaction is subject to approval by the relevant antitrust
authorities.
Contact:
United Internet AG
Investor Relations
Stephan Gramkow / Dominic Großmann
Elgendorfer Straße 57
56410 Montabaur
Tel: 02602/96-1043/-1671
Fax: 02602/96-1013
E-Mail: [email protected]
Internet: www.united-internet.de
08.11.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: United Internet AG
Elgendorfer Straße 57
56410 Montabaur
Germany
Phone: +49 (0)2602 / 96 - 1100
Fax: +49 (0)2602 / 96 - 1013
E-mail: [email protected]
Internet: www.united-internet.de
ISIN: DE0005089031
WKN: 508903
Indices: TecDAX
Listed: Regulated Market in Berlin, Frankfurt (Prime Standard);
Regulated Unofficial Market in Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of Announcement DGAP News-Service
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