In the future, United Internet wants to bundle its entire telecommunications business into its subsidiary 1&1.
To this end, 1&1 is taking over 1&1 Versatel from United Internet for around 1.3 billion euros, as the companies announced on Friday in Montabaur. Depending on the future business development of 1&1 Versatel in 2027, 2028 and 2029, the purchase price may increase or decrease by up to 300 million euros. Any adjustment amount would be due in 2030. United Internet holds around 86 percent of the also listed company 1&1.
1&1 is taking over 1&1 Versatel with all assets, in particular network infrastructure and debts, including 950 million euros in loan liabilities to United Internet. This loan, which remains with 1&1 Versatel, will be secured by a guarantee from 1&1 AG as part of the sale, it said.
The purchase price is to be offset against counterclaims from 1&1 and the granting of shareholder loans to 1&1 AG. According to the transaction, United Internet will not receive any liquid funds from the transaction. In addition, the internal transaction will not have any effects on United Internet’s 2025 annual forecast or any significant impact on 1&1’s key figures.
The further expansion of the Versatel fiber optic network is expected to make a negative contribution to the free cash flow of around 100 million euros in 2026 and 2027, said 1&1. Versatel will then contribute to strengthening the free flow of funds. With the purchase of Versatel, 1&1 will have the infrastructure required in the fixed network and mobile communications business as well as a powerful B2B business segment, the company said. The sale will take effect at the end of November 30th.
After trading, United Internet shares temporarily rose by 3.46 percent to 24.52 euros via Tradegate, while 1&1 shares rose by 3.54 percent to 21.95 euros.
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MONTABAUR (dpa-AFX)
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