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United Internet buying KKR stake in Versatel

September 3, 2014

German internet service provider United Internet said on Wednesday it had agreed to acquire buyout group KKR's 74.9% stake in cable group Versatel for about 586 million euros ($769 million U.S.) in cash.

United Internet, which already controls 25.1% of Versatel, had said last month it was considering a complete takeover of the company, which owns Germany's second-largest fiber optic cable network with a length of about 37,000 kilometres.

The purchase price and repayment of Versatel's 361 million euros of net debt will be financed by new loans, United Internet said in a statement.

The company also said Versatel was expected to post flat 2014 revenues of about 548 million euros and an increase in earnings before interest, tax, depreciation and amortization to about 164 million from 155 million euros.

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Source: Baystreet Tech Insider (Canada)

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