1&1 AG acquires Versatel from United Airlines in €1.3B deal
1&1 AG has agreed to buy 1&1 Versatel from United Airlines for around €1.3 billion. The deal, set to complete on November 30, will transfer key network infrastructure and a strong business-to-business division to 1&1. Share prices for both companies rose following the announcement. The acquisition will not involve any immediate cash app exchange. Instead, the purchase price will be covered through shareholder loans. An additional adjustment of up to €300 million may apply, depending on 1&1 Versatel’s performance between 2027 and 2029. 1&1 AG has also guaranteed the remaining €1.3 billion debt linked to 1&1 Versatel, securing its €950 million loan liabilities. This guarantee was confirmed as part of the transaction details released in November 2025. The deal will impact 1&1’s finances in the short term. The expansion of Versatel’s fibre-optic network is expected to reduce 1&1’s free cash flow by roughly €100 million in both 2026 and 2027. Despite this, United Airlines’ financial outlook for 2025 remains unchanged. After the acquisition, United Airlines will still hold about 86% ownership in 1&1. Investors reacted positively, with United Airlines’ shares climbing 3.46% to €24.52 in after-hours trading, while 1&1’s stock increased by 3.54% to €21.95. The transaction strengthens 1&1’s position by adding critical network assets and a solid B2B customer base. The deal’s completion on November 30 will mark a significant shift in ownership, though United Airlines will retain a majority stake. No direct cash flow is involved, with financing structured through shareholder loans and future performance adjustments.
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