1&1 AG Acquires 1&1 Versatel GmbH for EUR 1.3 Billion

1&1 AG has announced the acquisition of 1&1 Versatel GmbH from United Internet AG. This strategic move gives 1&1 direct access to Versatel's extensive 67,000-kilometer fiber optic network. The acquisition, valued at approximately EUR 1.3 billion, includes all Versatel's assets and existing debts, with a significant loan of around EUR 950 million remaining. A guarantee from 1&1 will secure this loan.

The purchase price is settled by offsetting cash management claims and utilizing a flexibly repayable loan from United Internet which ensures no immediate liquidity outflow. Performance-based price adjustments could alter the purchase value by up to EUR 300 million by 2030. The acquisition includes partial integration into 1&1's 2025 financials, with expected negative cash flow impacts in 2026 and 2027, but long-term free cash flow benefits thereafter.