United Internet claims to be Europe's "Number One Internet Specialist," employing about 8,000 people and promoting consumer and business applications to its customer base. Strato has about 500 people, operations in Germany in the Netherlands and more than 2 million customer contracts in place.
Strato’s annual revenue for fiscal year 2016 is forecasted to be around EUR 127 million (US $132.28 million) with anticipated EBITDA 2016 of around EUR 48.5 million (US $50.52 million). Note: The Euro-to-US exchange rates were current as of Dec. 19, 2016. United Internet is paying about EUR 600 million (US $624.96 million), or a healthy 12.4 times annual EBITDA.
Strato's products and services include portfolio includes domains, e-mail packages, complete website packages, webshops, servers, online storage and individual high-end hosting solutions. The business includes two data centers, located in Berlin and Karlsruhe, respectively.
This is the second major European hosting provider buyout in recent weeks. GoDaddy acquired Host Europe Group for $1.79 billion, or roughly 11 times EBITDA earlier this month.
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