Warburg backs United Internet's business application division

The purchase price is based on the division's equity value of €1.35bn, with an EV of €2.55bn. Warburg acquired its stake in United Internet via its vehicle WP XII Venture.

United Internet will remain the majority shareholder with a 66.67% stake. René Obermann of Warburg will join the business application division's supervisory board.

Warburg hopes the business will grow with the development of new products and services, as well as acquisitions. United Internet has the intention to float the division in around two years.

Company
Montabaur-based United Internet was founded in 1988 and employs 8,100 members of staff. The company owns internet portal brands such as GMX, web.de, 1&1, United Domains, Fasthosts, InterNetX, Sedo and Affilinet.

The business applications division pooled under 1&1 Internet comprises the hosting business with domains, home pages, webhosting, servers and e-shops, professional e-mail solutions, online storage and marketing tools.

The division had a turnover of €600m in 2015.

People
Warburg Pincus International – René Obermann (managing director).
United Internet – Ralph Dommermuth (CEO).

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• Topics
• Expansion
• DACH
• Technology
• Germany
• Warburg Pincus