TelecomTV TelecomTV
  • News
  • Videos
  • Channels
  • Events
  • Directory
  • Smart Studio
  • Surveys
  • Debates
  • Perspectives
  • DSP Leaders World Forum
  • DSP Leaders
  • Great Telco Debate
    • |
    • Follow
    • |
    • Subscribe
  • |
  • More
  • Webcasts
  • Surveys
  • Debates
  • Perspectives
  • Great Telco Debate
  • |
  • Follow TelecomTV
  • |
    • Subscribe
    • |
  • About
  • Privacy
  • Help
  • Contact
  • Follow TelecomTV
  • About
  • Privacy
  • Help
  • Contact
  • Sign In Register Subscribe
    • Subscribe
    • Sign In
    • Register
  • Search

Tracker

TelecomTV TRACKER

Sourced by TelecomTV's TRACKER platform
from Deutsche Telekom Media Center

Tracker

Sale of Strato to United Internet

Via Deutsche Telekom Media Center

Dec 15, 2016

12-15-2016

  • Deutsche Telekom to receive around 600 million euros

Deutsche Telekom has reached an agreement with United Internet AG on the sale of Strato AG. United Internet is to acquire Strato through a holding structure, in which the private equity firm Warburg Pincus* will also hold a stake.

Deutsche Telekom will transfer all Strato shares to United Internet for approx. 600 million euros. This represents an Enterprise Value / EBITDA 2016e multiple factor of approx. 12.4x. The transaction is expected to be closed in the first half of 2017.

A first payment of 566 million euros is to be made immediately on completion of the transaction. In addition, up to a further 34 million euros wil be paid at a later stage subject to certain performance milestones.

The transaction is awaiting approval by the German Federal Cartel Office.

The sale of Strato is in line with Deutsche Telekom's strategy of continuing to develop into the leading European telecommunications provider. A component of this strategy is to consider options for increasing the value of business areas that can no longer be adequately developed within the Deutsche Telekom Group, through partnerships or disposals.

Deutsche Telekom aquired the hosting services provider Strato for 275 million euros in 2009. The company, which was for the most part autonomously managed, has developed well under the value creation oriented advice provided by Deutsche Telekom Capital Partners. Over the last five years, revenues have increased organically from approx. 90 million euros to 127 million euros, and in EBITDA from around 30 million euros to 49 million euros.

Until-now, Strato has been the service provider for the hosting of MagentaCLOUD services within the Telekom Group. The planned future owner, United Internet, will continue to provide these services in the coming years. This will ensure that the data continues to be stored in Germany, which means that strict German legal requirements will be met, and that the services will be underpinned by Deutsche Telekom's data privacy and data security criteria. Nothing will change for Deutsche Telekom's end customers.

Deutsche Telekom was advised on this transaction by Deutsche Telekom Capital Partners.

  • WP XII Venture Holdings S.a.r.l., a subsidiary of private equity funds administered by Warburg Pincus LLC (jointly: "Warburg Pincus")
Related Topics
  • Announcement,
  • Deutsche Telekom,
  • Device Software & Apps,
  • Digital Platforms & Services,
  • Enterprise,
  • Europe,
  • Media & Entertainment,
  • News,
  • Tracker

More Like This

5G

Nokia and WEG Brazil launch Industry 4.0 project with 5G standalone private wireless

Mar 5, 2021

Digital Platforms & Services

DISH selects Amdocs’ cloud-native billing platform to support 5G services

Mar 5, 2021

Cloud Native

DZS Acquires Network Orchestration and Software Automation Innovator RIFT

Mar 4, 2021

Access Evolution

Ciena reports fiscal first quarter 2021 financial results

Mar 4, 2021

Digital Platforms & Services

Digital Realty lays out industry manifesto for enabling connected data communities

Mar 4, 2021

This content extract was originally sourced from an external website (Deutsche Telekom Media Center) and is the copyright of the external website owner. TelecomTV is not responsible for the content of external websites. Legal Notices

Email Newsletters

Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.

Subscribe

Top Picks

Highlights of our content from across TelecomTV today

18:24

How Zoom evolved in the pandemic era

26:24

Red Hat and HPE discuss how to support open multi-vendor 5G network slices

14:28

How RADCOM is helping Rakuten Mobile run its innovative 5G network

8:33

Monetizing innovative telco edge services

  • TelecomTV
  • Decisive Media

TelecomTV is produced by the team at Decisive Media

Menu
  • News
  • Videos
  • Channels
  • Directory
  • Smart Studio
 
  • Surveys
  • Debates
  • Perspectives
  • Events
  • About Us
Our Brands
  • TelecomTV Tracker
  • TelecomTV Perspectives
  • DSP Leaders
  • DSP Leaders World Forum
  • The Great Telco Debate
Get In Touch
[email protected]
+44 (0) 207 448 1070

Request a Media Pack

Follow
  • © Decisive Media Limited 2021. All rights reserved. All brands and products are the trademarks of their respective holder(s).
  • Privacy
  • Terms
  • Legal Notices