United Internet AG
United Internet acquires UK webhosting specialist Fasthosts
Corporate-news transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Press release
United Internet acquires UK webhosting specialist Fasthosts
Montabaur, May 16, 2006. United Internet AG, Montabaur, has acquired a 100%
stake in the UK webhosting specialist Fasthosts Internet Ltd., Gloucester.
The acquisition contracts were signed yesterday. The agreed purchase price
is 61.5 million pounds in cash.
With over 220,000 customer contracts, 300,000 websites and 750,000 domains,
Fasthosts is a leading supplier on the UK webhosting market for end-users
as well as for small and mid-size companies. Founded in 1999, the company
has already been posting profits for several years. Fasthosts will remain
an independent brand in the UK and retain its current management.
United Internet has been active on the UK market since June 2000 via its
1&1 brand. 1&1 Internet Ltd. has been profitable since late 2003 and is now
a leading player on the UK hosting market with over 300,000 customer
contracts.
“Whereas until now we have proved our ability to achieve fast organic
growth also in foreign markets, the next step is to accelerate growth with
our acquisition of Fasthosts,” says Ralph Dommermuth, CEO of United
Internet AG. “We have thus further consolidated our position on the UK
market. At the same time, Fasthosts will give us access to a highly
efficient reseller network,” continues Dommermuth. With some 5,000 active
resellers, Fasthosts currently operates one of the best developed reseller
networks in the UK.
“We were able to benefit from our experience in the UK market when
establishing our 1&1 brand on the world’s largest hosting market – the
USA,” adds Dommermuth. “We have also grown organically in the USA and are
already among the country’s leading webhosters after just two years. We
recently stepped up our US marketing budget once again, as we are currently
achieving very good growth rates at acceptable customer acquisition costs.
Despite this increase, however, we still aim to achieve profitability for
the first time on a monthly basis during the course of the year,” announces
Dommermuth. “In total, we are very satisfied with the development of our
international webhosting business in the UK, France, Austria and the USA.”
With over 5,3 million customer contracts, United Internet AG is one of the
leading Internet Service Providers (ISP). In its “Product” segment, the
Group’s value-added internet services and fast internet connections are
directed at private users, small/home offices (SoHos) and small to mid-size
enterprises (SMEs). These groups are served by the brands GMX, WEB.DE, 1&1
and Schlund+Partner. In addition to its “Product” business, the Group is
also engaged in “Outsourcing” (via the brands InterNetX and twenty4help) as
well as “Online Marketing” (via the brands AdLINK, affilinet and Sedo).
(c)DGAP 16.05.2006
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Language: English
Issuer: United Internet AG
Elgendorfer Straße 57
56410 Montabaur Deutschland
Phone: +49 (0)260 296-1631
Fax: +49 (0)260 296-1013
email: Investor-Relations@United-Internet.de
WWW: www.United-Internet.de
ISIN: DE0005089031
WKN: 508903
indices: TecDAX
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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