1&1 AG has announced plans to acquire United Internet’s 1&1 Versatel GmbH for €1.3 billion ($1.5bn).

As part of the deal, Germany’s 1&1 AG has agreed to purchase all shares of United Internet Management Holding SE, the sole shareholder of Versatel.

In an announcement last week, 1&1 stated that its supervisory board approved the conclusion of the share purchase agreement.

The deal will see 1&1 take over Versatel, the infrastructure provider for the 1&1 group, plus all its assets, including network infrastructure and debts, which includes a loan liability of approximately €950 million ($1.09bn) to United Internet.

1&1 Versatel operates one of the biggest fiber networks in Germany, across more than 350 cities, spanning 67,000km in length.

According to 1&1 Group, the purchase price may increase or decrease by up to €300m ($345m) depending on results in fiscal years 2027, 2028, and 2029.

Versatel, in partnership with city network operators and Deutsche Telekom, provides all broadband connections marketed by 1&1 and operates the 1&1 IPTV and VoIP platforms.

The company provides essential preliminary services in the operation and expansion of the 1&1 mobile network, which includes the provision of 1&1 data centers – four core data centers, 24 Edge data centers, and currently more than 300 far-Edge data centers.

The deal comes a couple of years after 1&1 Versatel acquired BT Group’s German fiber assets. That deal saw 1&1 acquire BT’s fiber optic network across Düsseldorf, Frankfurt, Munich, and Stuttgart, totaling 1,590km of fiber.

1&1 noted that its acquisition of Versatel means that the company will have the “necessary infrastructure for its fixed-line and mobile business” for the future.