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United Internet buys Deutsche Telekom's Strato for 600 mln euros

Published 15/12/2016, 08:01
Updated 15/12/2016, 08:01
© Reuters.  United Internet buys Deutsche Telekom's Strato for 600 mln euros

© Reuters. United Internet buys Deutsche Telekom's Strato for 600 mln euros

FRANKFURT (Reuters) - German internet service provider United Internet has agreed to buy web hosting business Strato from Deutsche Telekom (DE:DTEGn) for around 600 million euros (501.43 million pounds) in cash, having lost out in an auction for Host Europe Group earlier this month.

The acquisition will be made via a new holding recently formed with Warburg Pincus, United Internet said on Thursday.

Some 566 million euros of the purchase price for Strato due in 2017 will be funded by a 350 million euro loan from United Internet and by equity capital to be provided by United Internet and Warburg Pincus.

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