Germany's 1&1 agrees to acquire 1&1 Versatel From United Internet

German telecommunications company 1&1 AG said on Friday it had agreed to acquire 1&1 Versatel from United Internet.

The transaction involves the purchase of all shares of United Internet Management Holding SE, Montabaur, the sole shareholder of Versatel.

The purchase price for the acquisition amounts to about €1.3 billion ($1.49 billion), the companies said in a statement.

In return, 1&1 will take over Versatel, including all assets, particularly network infrastructure and debts, including a loan liability of about €950 million to United Internet.

Depending on business results of Versatel in the fiscal years 2027, 2028, and 2029, the purchase price may increase or decrease by up to €300 million, the statement said. Any adjustment amount will become due in 2030.

Versatel is a provider specializing in fiber optic connections for businesses, authorities, and institutions. The company operates a fiber optic network approximately 67,000 kilometres long, reaching over 350 cities in Germany.