United Internet AG has agreed to acquire Spanish web hosting provider Arsys Internet in an announcement on Monday

United Internet Acquires Spanish Web Host Arsys Internet

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United Internet AG has agreed to acquire Spanish web hosting provider Arsys Internet in an announcement on Monday, putting to rest rumors of the deal that surfaced in early August.

While an article by Computerworld Espana at the start of August pegged the deal in the €150 million range, Arsys has been valued at up to €140 million. The cash transaction is expected to be closed over the next few days.

Arsys employs 290 people, and has 150,000 customers, making it one of the largest companies in Spain’s web hosting and cloud market. Arsys has annual sales of around €40 million and EBITA of €15 million.  Since 2008, investment firms The Carlyle Group and Meracapital had a 79 percent stake.

Arsys’ services are hosted in two wholly-owned data centers in Spain, and the company will continue to operate as an independent company. In 2009, Arsys opened its second data center in La Rioja, Spain.

Since United Internet will be represented in Spain by both 1&1 and Arsys, there is a possibility that Arsys may be integrated with 1&1 down the road.

“1&1’s acquisition of Arsys is generally a surprise given 1&1 has never been heavily involved in M&A and has focused on organic growth. 1&1 has looked to M&A – mostly notably when it acquired Fasthosts in the UK – in strategic geographies and when the hoster is of a meaningful size and scale. Arsys certainly fits that bill being one of the largest pureplay hosters in Spain,” Philbert Shih, managing director Structure Research tells the WHIR in an email. “The deal gives it significant presence in Spain, which it can use to move further into Spanish-speaking geographies. Like Fasthosts, Arsys won’t be an easy integration given its wide-ranging portfolio and because of that is likely to maintain its branding and continue operating on a standalone basis.”

United Internet acquired FastHosts in 2006 for $115 million. 


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