1&1 Versatel Overview
About 1&1 Versatel
Versatel is a German telecommunications and fibre-network operator serving business customers, public organisations and other communications providers. Its services include voice, internet access, data connectivity and access to network infrastructure. The business combines regional fibre networks with a national backbone and earns recurring revenue through telecommunications and connectivity contracts. The German company developed from regional network businesses and expanded through acquisitions, including KielNET and Hamburg fibre infrastructure during KKR’s ownership. At the 2014 sale, United Internet described its fibre network as approximately 37,000 kilometres spanning 226 German cities. KKR acquired the business in 2011, after which United Internet bought an indirect 25.1% stake in 2012. United Internet agreed to acquire KKR’s remaining 74.9% in September 2014, rather than first acquiring the company in 2015. The company subsequently adopted the 1&1 Versatel name in 2016.
Founded
1999
HQ
Status
Acquired
Customer focus
B2B
Revenue model
Subscription
Valuation
$1.5B (acquired Nov 2025)
1&1 Versatel Acquisition
1&1 Versatel was acquired by 1&1 for $1.5B on 21 November 2025.
1&1 AG agreed to acquire 1&1 Versatel from its majority shareholder United Internet in November 2025. The purchase price was about EUR 1.3 billion for all shares of United Internet Management Holding SE, the sole shareholder of Versatel. 1&1 also takes over Versatel's network infrastructure and debts, including a loan of about EUR 950 million owed to United Internet, which 1&1 will guarantee. The price can rise or fall by up to EUR 300 million depending on Versatel's results in 2027, 2028 and 2029, with any adjustment due in 2030. No cash changes hands at closing, as the price is settled against existing cash management claims of 1&1 on United Internet and a flexible loan from United Internet. The 1&1 supervisory board approved the agreement on 21 November 2025, and the acquisition takes effect economically from the end of 30 November 2025. Versatel operates a Germany-wide fibre-optic transport network that 1&1 already uses for its broadband products.
| Acquirer | Date | Type | Price |
|---|---|---|---|
| 21 Nov 2025 | Strategic M&A | $1.5B |
Sources: eqs-news.com
1&1 Versatel Funding History
1&1 Versatel has 1 recorded secondary share sale and no primary funding rounds.
| Date | Stage | Investors | Deal Summary |
|---|---|---|---|
| Nov 2012 | Secondary | United Internet | United Internet announced on November 14, 2012 that its boards had approved exercising an option to acquire 25.1% of Versatel’s parent holding company from the KKR-controlled ownership structure. The option had been granted when United Internet sold its previous Versatel holding to KKR in May 2011. The acquisition was implemented in December 2012 by converting the EUR59.8 million vendor loan into shares of the holding company. United Internet’s subsequent annual report identifies December 12 as the exercise date, and its 2014 acquisition announcement confirms that the 25.1% interest had been held since the end of 2012. This was a reinvestment in the existing Versatel business rather than an acquisition of a separate operating network. KKR remained the majority owner after the transaction. The loan conversion amount is preserved as the stated transaction mechanism and is not combined with later carrying values or the 2014 purchase price to fabricate a single company valuation. |
Who has invested in 1&1 Versatel?
1 investor has backed 1&1 Versatel across its funding rounds, including United Internet.
1&1 Versatel Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
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Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
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Start Free TrialAcquisitions by 1&1 Versatel
1&1 Versatel has acquired 2 companies to date.
Last acquisition by 1&1 Versatel was on October 21st 2013. 1&1 Versatel acquired Telefonica Hamburg fibre network and data centre for undisclosed valuation.
Latest Acquisitions by 1&1 Versatel
| Description | The Hamburg fibre-network and data-centre business comprised metropolitan telecommunications infrastructure transferred by Telefonica Deutschland to Versatel in 2013. The perimeter included approximately 1,000 cable kilometres, corresponding to around 93,000 fibre kilometres, and a newly constructed data centre. The network supported business and wholesale connectivity in Hamburg, one of Germany’s largest commercial centres. Its facilities also enabled housing services for customer equipment and connections used by telecommunications operators. The business earned revenue through network access, connectivity and related infrastructure services rather than manufacturing telecommunications equipment. The transferred assets expanded Versatel’s own urban network footprint and complemented its regional and national infrastructure. A continuing cooperation arrangement allowed Telefonica to access fibre connections within Versatel’s coverage area. This record represents the specific Hamburg operating assets acquired, not all of Telefonica Deutschland or the historic nationwide HanseNet business. | KielNET was a regional telecommunications provider based in Kiel, Germany, and established in 1996. The company served business, residential and wholesale customers across the greater Kiel area and parts of Schleswig-Holstein. Its activities combined telecommunications services with regional network infrastructure, supporting voice, internet and connectivity requirements. The business earned revenue from customer service contracts and infrastructure-related telecommunications arrangements. Before its sale to Versatel, KielNET was owned equally by Stadtwerke Kiel and freenet Cityline, a subsidiary of freenet. Its regional commercial presence complemented Versatel’s existing northern German fibre operations. The acquisition agreement included a long-term infrastructure cooperation arrangement with Stadtwerke Kiel, linking the transferred company with continuing local infrastructure support. KielNET became part of the Versatel group following the 2012 acquisition, with its regional fibre network integrated into the wider business during 2013. |
| HQ Country | ||
| HQ City | - | - |
| Deal Date | 21 Oct 2013 | 25 Sep 2012 |
| Valuation | undisclosed | undisclosed |
| EV/Revenue | ||
| EV/EBITDA | ||
This data is available for Pro users. Sign up to see all 1&1 Versatel acquisitions and their M&A valuation multiples. Start Free Trial | ||
1&1 Versatel Competitors
1&1 Versatel competitors include listed companies like Liberty Latin America, Chorus, Superloop and NetLink NBN, and private ones like Iranian Net Co. and Digital InfraCo.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Publicly listed | $4.4B | $909M | $1.7B | 2.3x | ||
| Publicly listed | $575M | $283M | $2B | 6.3x | ||
| Publicly listed | $461M | $73M | $1B | 2.2x | ||
| Publicly listed | $323M | $220M | $2.9B | 10.8x | ||
| Private | $31M | - | $602M | 19.4x | ||
| Private | - | - | $4.3B | - |
1&1 Versatel Public Comps
1&1 Versatel is no longer listed, but its public comps include PT XLSmart Telecom, Mitratel, Cetc Potevio Science, Cellcom Israel, Telia Lietuva, Anterix, CITIC Guoan Information, StarHub, Beijing Gehua CATV and Guangdong South New Media.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $2.3B | $930M | 2.0x | 1.8x | 5.0x | 4.0x | |||
| $527M | $394M | 5.1x | 4.9x | 6.8x | 6.0x | |||
| $733M | $25M | 1.9x | - | 54.4x | - | |||
| $1.3B | $549M | 1.6x | - | 3.8x | - | |||
| $569M | $219M | 2.8x | - | 7.3x | - | |||
| $7M | ($29M) | 207.1x | 85.7x | (45.6x) | (46.6x) | |||
| $499M | $53M | 3.0x | - | 28.0x | - | |||
| $1.8B | $308M | 1.3x | 1.4x | 7.6x | 8.8x | |||
This data is available for Pro users. Sign up to see all 1&1 Versatel competitors and their valuation data. Start Free Trial | ||||||||
Common questions about 1&1 Versatel
| When was 1&1 Versatel founded? | 1&1 Versatel was founded in 1999. |
| Where is 1&1 Versatel headquartered? | 1&1 Versatel is headquartered in Germany. |
| Is 1&1 Versatel publicly listed? | No, 1&1 Versatel was acquired by 1&1 in November 2025. |
| Who acquired 1&1 Versatel? | 1&1 Versatel was acquired by 1&1 in November 2025. |
| How much was 1&1 Versatel acquired for? | 1&1 Versatel was acquired for $1.5B in November 2025. |
| Who are 1&1 Versatel's investors? | 1&1 Versatel's investors include United Internet. |
| Which companies are comparable to 1&1 Versatel? | Companies comparable to 1&1 Versatel include Liberty Latin America, Chorus, Superloop, NetLink NBN, Iranian Net Co. and Digital InfraCo. |
| How many companies has 1&1 Versatel acquired? | 1&1 Versatel has acquired 2 companies, including Telefonica Hamburg fibre network and data centre and KielNET. |
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