KKR Buys Versatel for $342M

Kohlberg Kravis Roberts & Co. paid 240 million euros ($342 million) for Versatel, Reuters reported. Major Versatel shareholders Apax Partners with 41.7 percent, Cyrte and United Internet, with about 25 percent each, agreed to sell their shares for 5.50 euros apiece. The deal is set to close in the third quarter.

(Reuters) – U.S. buyout firm Kohlberg Kravis Roberts & Co bagged German Versatel for just over 240 million euros ($342 million) to focus the telecommunications company on business customers.

Major Versatel shareholders Apax Partners [APAX.UL] with 41.7 percent, Cyrte and United Internet , with about 25 percent each agreed to sell their shares for 5.50 euros apiece.

Shareholders holding the remaining 3 percent will be offered 6.70 euros per share, KKR said.

Shares in Versatel closed at 7.95 euros on Wednesday.

“With its brand and its excellent optic fibre network Versatel is a company that is unique in the European telecommunications market,” KKR executive Henriok Kraft said.

In a separate statement, United Internet said that during the 17 months after completion of the deal, United Internet will have the right to acquired all shares in KKR’s acquisition vehicle set up for the Versatal purchase.

After that period, United Internet will be entitled to buy 25.1 percent of the shares in the holding company.

United Internet said it also agreed with KKR on a long-term cooperation regarding Versatel.

The transaction is to be completed in the third quarter, it added.

A source familiar with the matter told Reuters late on Wednesday that KKR was in talks to acquire Versatel.

(Reporting by Ludwig Burger and Alexander Huebner)