Germany’s United Internet buys Polish web hosting service home.pl

By bne IntelliNews July 10, 2015

Germany's United Internet announced on July 10 that it has reached an agreement to acquire Polish webhosting leader home.pl via its 1&1 Internet SE subsidiary.

The purchase price of all shares in home.pl amounts to around €135mn in cash – subject to adjustment at closing, the German company said in a statement. Interest-bearing liabilities amounting to around €20mn will be repaid as the deal is closed with the selling investors, which are led by private equity fund V4C Eastern Europe.

Home.pl employs 240 people and has 300,000 customers. It is expected that EBITDA will amount to €10mn this year, while sales will reach around €25mn.

Following the takeover, which is subject to approval from relevant anti-trust authorities, home.pl will continue to operate as an independent company under its current management team. Together with the United Internet brand 1&1, which has operated in Poland since 2010, it aims to gain further ground on the Polish market.

Polish media and internet market has sparked no little interest amongst investors seeking to tap growing consumer spending in the country. US media group Scripps Networks Interactive has just closed a deal for 52.7% in broadcaster and internet portal operator TVN, and now plans to buy the remaining shares in the company.  

Media company Grupa Wirtualna Polska - operator of Poland's biggest internet portal - started trading on the Warsaw Stock Exchange (WSE) on May 8, while Gremi Grupa's media assets were listed on the WSE at the beginning of the month.

Analysts suggested United Internet paid handsomely for its takeover of home.pl, paying 15.5 times estimated 2015 operating profit, reports Reuters. However, they also note as a good strategic fit offering growth prospects that should make it a worthwhile deal. 

The German company said at the same time that it may float its arm offering web-hosting and online services for corporate customers to fund an acquisition drive.

Related Articles

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

Speculation over a second downgrade grows as S&P drops outlook on Polish economy

Speculation that Poland could suffer a second downgrade of its sovereign rating at the end of the week intensified on January 10, as Standard & Poor’s lowered its estimates on economic growth. ... ... more

Polish government offers temporary olive branch in parliament standoff

Polish media were temporarily readmitted to parliament under the old lax rules on January 5. The ruling party Law and Justice (PiS) had sought to place restrictions on reporting in December, ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss