- Company could fetch more than 1.5 billion euros in sale
- Cinven said working with advisers on potential disposal
Cinven Ltd. is reviving the sale of its Internet domain and hosting company Host Europe Group Ltd., after deciding to delay following the U.K.’s June vote to leave the European Union, according to people familiar with the situation.
Host Europe is working with advisers on the sale, which could fetch more than 1.5 billion euros ($1.7 billion), the people said, asking not to be identified as the discussions are private. Information about the business was distributed to potential bidders this week, they said. A representative for Cinven declined to comment.
The company, which is registered in the U.K. and has a large customer base in Germany, drew interest from United Internet AG and Deutsche Telekom AG in the run up to the Brexit vote in June, people familiar with the plans said at the time. Host Europe has 1.7 million customers and control over nine data centers in the U.S. and Europe, assets that may prove attractive to buyers as more consumers and companies do business and store data online.
United Internet Chief Executive Officer Ralph Dommermuth said in an interview last month that the company would look at a hosting firm if one came on the market. Buyout funds Hellman & Friedman and Blackstone Group LP may also consider a bid, people with knowledge of the plans said in June.
Host Europe reported adjusted earnings before interest, tax, depreciation and amortization of 111.3 million euros in 2015, an increase of 45 percent from a year earlier. Revenues rose 43 percent to 269.8 million euros. Under Cinven’s ownership, Host Europe has made a number of add-on acquisitions including Intergenia Holding GmbH, a German web hosting and server solution provider, about a year ago.