United Internet Buys 10.7% Stake In Rocket Internet For EUR 435 Mln

(RTTNews) - German Internet service provider United Internet AG (UDIRF.PK) announced Friday that it has acquired 10.7% stake in Rocket Internet AG for 435 million euros.

United Internet stated that the investment will cement the long term strategic relationship between United Internet and Oliver Samwer, Rocket's Chief Executive Officer and co-founder.

United Internet's investment consists of 333 million euros in cash, and 102 million euros represented by United Internet's equity participation in the portfolio of the Global Founders Capital funds.

Global Founders Capital is a portfolio of over 50 venture capital investments held jointly by United Internet and Global Founders Fund GmbH, the personal investment vehicle of Oliver Samwer and his brothers.

The portfolio includes minority stakes in companies such as games maker Goodgame Studios; online travel sites such as Traveloka and Travelbird; online marketplaces Yemek Sepeti and DaWanda; and financial technology companies Kreditech, Borro and SocietyOne.

By contributing its shares in the investment funds to Rocket Internet, United Internet will recognize one-off, non-cash income of around 70 million euros this year.

Under deal terms , United Internet will buy newly issued shares by Berlin-based Rocket. Ralph Dommermuth, United Internet's CEO, will become a member of Rocket's supervisory board.

Rocket Internet identifies and builds proven internet business models and transfers them to new, underserved or untapped markets where it seeks to scale them into market leading online companies.

Berlin-based Rocket Internet aims to create the largest Internet empire outside the China and the United States.

Following this investment, In addition to United Internet's 10.7 percent stake in Rocket, Investment AB Kinnevik holds 18.5 percent, Access Industries 8.5 percent; Philippine Long Distance Telephone has 8.6 percent; and Global Founders Fund has 53.7 percent.