United Internet News

Investments
, ,
1

This topic summarizes and discusses United Internet news.

2

I=7
IONOS will buy back shares worth EUR 60 million

  • IONOS announced that it will buy back share up to 2,000,000 treasury shares worth EUR 60 million via the stock exchange.

    “With the approval of the Supervisory Board, to launch a share buyback program and to acquire up to 2,000,000 treasury shares (corresponding to approx. 1.4% of the share capital of EUR 140,000,000) via the stock exchange. The volume of the buyback program amounts to a total of up to EUR 60 million (excluding associated costs).”

  • United Internet controls 63.8% stake in IONOS Group SE as of Q3 2025 (page 6).

Assessment
The buyback may send a message of confidence to the market regarding IONOS’s future cash flow and performance. It could also signal that they have found a buyer for the AdTech business since they said in the latest earnings call that they may deploy proceeds of the sale in share buybacks (Notion-Q3 2025 earnings call)

1 Like
3

I=10
1&1 acquires 1&1 Versatel for approx. EUR 1.3 billion and will take over all its assets, including a loan liability of approx. EUR 950 million to United Internet

  • 1&1 buys Versatel from United Internet for around €1.3 billion, taking over its assets and roughly €950 million of debt.
  • No cash leaves 1&1 at closing since the payment is done via internal offsets and a repayable loan to United Internet.
  • The price may increased or decrease by €300m in 2030, depending on Versatel’s 2027–2029 results.
  • United Internet said the transaction will have no impact on its 2025 guidance.

Assessment

UI shares rose 5% from +2.8% earlier on while 1&1 shares rose more than 4.3% from more than 2% earlier on following the announcement.

In my opinion, the acquisition of Versatel by 1&1 increases probability of Telefonica buying 1&1 since their main interest based on Telefonica new CEO’S commentaries is fibre expansion in Germany (Notion-Q3 2025 United Internet earnings). 1&1 could be trying to pass a message that “If you want to buy Versatel, you will have to buy us also”. Versatel also increases the value for 1&1 since 1&1 is now a full package.

I estimate Versatel could generate EBITDA of EUR 168 million in 2025 (Valuation Model-Google Sheets). Hence, at EUR 1.3 billion buying price and maybe 700m-1b in net debt the enterprise value is around EUR 2-2.3 billion and EV/EBITDA of 12x-14x. This suggests that a premium was paid given United Internet’s and IONOS’s EV/EBITDA is around 6x and 10x, respectively.

While United Internet doesn’t receive any immediate cash from the sale, its cash outflows to 1&1 will be canceled since it owed 1&1 EUR 770 million as at 30 September 2025 (page 18). The transaction will thus improve its liquidity, enabling United Internet to reduce its debt liabilities and even pursue share buy backs in future.

Versatel’s integration with 1&1 also helps reduce United Internet’s complexity, helping boost its valuation multiples.

Overall, I think the sale of Versatel to 1&1 is positive for United Internet.

1 Like