Report: Deutsche Telekom Drops Out of Bidding for Host Europe Group

Add Your Comments

Deutsche Telekom has withdrawn its bid for European web host Host Europe Group (HEG), according to a report by Reuters on Tuesday. HEG’s owner, private equity company Cinven, started shopping for buyers in April, and Deutsche Telekom was believed to be one of the top contenders.

Read about 7 cloud trends in our exclusive free download: Download The Cloud in 2020 & Beyond: 7 Key Technologies Transforming Your Business

The telecommunciations provider decided not to pursue a deal “due to the likely valuation” of $1.8 billion and ” a lack of enough organic growth prospects and potential problems with integrating HEG within its existing business,” Reuters’ sources said.

HEG is one of the largest independent web hosting firms in Europe. It primarily serves small and mid-sized businesses.

United Internet, private equity firm Centerbridge, and web host GoDaddy remain in the race to purchase HEG, the report says. United Internet decided recently to delay a planned IPO as it sold a hosting stake to Warburg Pincus.

 

Newsletters

Subscribe Now and Get Our Exclusive Report on "The Hosting Infrastructure Ecosystem"

Enter your email to receive messages about offerings by Penton, its brands, affiliates and/or third-party partners, consistent with Penton's Privacy Policy.

Related Forum Threads

Add Your Comments

  • (will not be published)