1&1 deal to acquire Versatel for €1.3 billion consolidates Germany’s fixed and mobile infrastructure, strengthening its grip on fiber backhaul and B2B connectivity.
Summary
- The deal covers Versatel’s fiber, mobile backhaul and B2B assets, plus a €950 million loan that remains with Versatel but has a 1&1 guarantee.
- Versatel’s fiber optic network has been expanded from 37,000 km in 226 cities to 67,000 km in 350 cities, now connecting more than 27,700 locations.
- This move supports 1&1’s strategy as Germany’s fourth facility-based mobile operator, following the migration of 12 million users to the Open RAN network.
German telecommunications operator 1&1 has agreed to acquire Versatel for €1.3 billion, the company announced on Thursday, in a deal that consolidates control over its fixed and mobile network infrastructure.
The transaction gives 1&1 ownership of Versatel’s fiber network, mobile backhaul infrastructure and business-to-business assets, according to the announcement. The deal includes all assets and liabilities of Versatel, including a €950 million loan to parent company United Internet.
The loan will remain with Versatel but will be backed by a 1&1 guarantee, with no immediate cash outflow required for the transaction, the company said. The purchase price can be adjusted by up to €300 million based on Versatel’s performance between 2027 and 2029, with any reconciliation taking place in 2030.
Versatel’s network has expanded significantly since United Internet took full control in 2014, from 23,000 miles in 226 cities to 67,000 miles in 350 cities, according to company data. The network now connects more than 27,700 locations and serves institutional customers and other telecommunications companies.
The acquisition positions 1&1 to integrate its mobile and fixed line activities as Germany’s fourth major facility mobile provider. The company recently migrated its 12 million customers to its Open RAN mobile network, a transition expected to benefit from alignment with Versatel’s fiber infrastructure.
Industry analysts have noted that consolidating fixed and mobile assets strengthens 1&1’s competitive position in the growing German fiber market. accelerated commitment after years of slower progress compared to other European countries.
The transaction is subject to regulatory approval. The deal reflects 1&1’s strategic focus on controlling the infrastructure supporting consumer and business services in Germany, industry observers said.
