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Arma advises freenet on EUR275m sale of Strato to Deutsche Telekom

Arma Partners has acted as exclusive financial adviser to freenet in relation to the proposed sale of its Strato web hosting business to Deutsche Telekom for a total consideration of EUR275m (USD409m) in cash.

The proposed sale was announced on 19 November 2009.

Strato provides web hosting and SaaS solutions to business and retail customers around Europe.
 
Closing of the transaction is subject to German Federal Cartel Office approval.
 
For the first nine months of 2009, freenet has reported revenues for its hosting business activities of EUR66m and Ebitda of EUR24m.
 
The disposal of Strato marks the continuation of freenet’s strategy to concentrate on mobile and mobile internet. With the acquisition of debitel Group in July 2008, freenet had around 19 million subscribers and 20 per cent of the overall German mobile market. In May 2009, freenet also announced the disposal of its DSL internet access business.
 
The proposed sale of Strato is the fourth transaction on which Arma has worked with freenet, having advised on freenet’s EUR123m sale of its DSL business to United Internet inMay 2009, its EUR1.6bn acquisition of debitel Group (announced April 2008) and its acquisition of Tiscali’s German broadband and narrowband contracts in January 2007.

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