United Internet takes over cloud hosting specialist ProfitBricks

Montabaur, July 27, 2017. United Internet AG today reached an agreement with the other shareholders of ProfitBricks GmbH, a technologically leading cloud hosting specialist, regarding the complete acquisition of the company. United Internet has held a stake in ProfitBricks since 2010 (current shareholding 44.42%) and is now acquiring the remaining 55.58% of shares from the other shareholders. The complete takeover will strengthen United Internet’s activities with Business Applications, which are pooled with its subsidiary 1&1 Internet SE – in which Warburg Pincus holds a stake. This will expand 1&1’s leading position in Europe for cloud hosting and enable it to add an innovative enterprise cloud platform to its product range.

Based in Berlin, ProfitBricks was founded in 2010 and employs over 120 people from more than 20 nations. The company is the first and only specialized cloud computing provider of Infrastructure-as-a-Service (IaaS) in Germany and offers professional public and hybrid cloud solutions which comply with the strict German and European data privacy guidelines. ProfitBricks operates four data centers in Frankfurt am Main, Karlsruhe, Las Vegas and New Jersey.

“The products and services of ProfitBricks are an ideal fit for our own product portfolio of cloud solutions and will enable us to attract clients seeking a bespoke and professional cloud infrastructure. I am also delighted to welcome Achim Weiss, a former 1&1 Management Board member, to our management team,” says Ralph Dommermuth, CEO of United Internet.

“We are thrilled to now belong fully to the 1&1 family. During the previous participation period, we already recognized that the two companies complement each other perfectly,” commented Achim Weiss, CEO of ProfitBricks. “By combining the know-how of 1&1 and ProfitBricks, we can enhance our innovative strength and provide even better support for developers and companies wishing to upgrade to professional cloud solutions.”

The share purchase is subject to the usual approval process of the German Federal Cartel Office (“Bundeskartellamt”).

[Note: JPG - Portrait picture of Achim Weiss, CEO of ProfitBricks]