FRANKFURT Dec 15 German internet service
provider United Internet has agreed to buy web hosting
business Strato from Deutsche Telekom for around 600
million euros ($629 million) in cash, having lost out in an
auction for Host Europe Group earlier this month.
The acquisition will be made via a new holding recently
formed with Warburg Pincus, United Internet said on Thursday.
Some 566 million euros of the purchase price for Strato due
in 2017 will be funded by a 350 million euro loan from United
Internet and by equity capital to be provided by United Internet
and Warburg Pincus.
($1 = 0.9539 euros)
(Reporting by Maria Sheahan; editing by Susan Thomas)