1&1 to buy Versatel for €1.3b, tightening grip on German fiber

1&1 deal to acquire Versatel for €1.3b consolidates German fixed-line and mobile infrastructure, tightening its grip on fiber backhaul and B2B connectivity.

German telecommunications operator 1&1 has agreed to acquire Versatel for €1.3 billion, the company announced Thursday, in a deal that consolidates control over fixed-line 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 encompasses all of Versatel’s assets and liabilities, including a €950 million loan to parent company United Internet.

The loan will remain with Versatel but is secured by a 1&1 guarantee, with no immediate cash outflow required for the transaction, the company stated. The purchase price may be adjusted by up to €300 million based on Versatel’s performance between 2027 and 2029, with any reconciliation to occur in 2030.

Versatel’s network has expanded substantially since United Internet gained full control in 2014, growing from 37,000 kilometers across 226 cities to 67,000 kilometers in 350 cities, according to company data. The network now connects over 27,700 sites and serves institutional clients and other telecommunications operators.

The acquisition positions 1&1 to integrate its mobile and fixed-line operations as Germany‘s fourth major facilities-based 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 Germany’s expanding fiber market, which has accelerated deployment following years of slower progress compared to other European nations.

The transaction is subject to regulatory approvals. The deal reflects 1&1’s strategic focus on controlling infrastructure to support consumer and enterprise services in Germany, according to industry observers.