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

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Deutsche Telekom has withdrawn its bid for European web host Host Europe Group (HEG), according to a report by Reuters on Tuesday.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.

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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.


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