FRANKFURT (Reuters) - German internet service provider United Internet said on Wednesday it had agreed to acquire buyout group KKR’s 74.9 percent stake in cable group Versatel for about 586 million euros ($769 million) in cash.
United Internet, which already controls 25.1 percent 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 kilometers.
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.
It 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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Reporting by Maria Sheahan; Editing by Matt Driskill