With the deal, which consisted of a €333m in cash and €102m represented by the equity participation in the portfolio of Global Founders Capital, United Internet is acquiring a 10.7% stake in Rocket.
Global Founders Capital is a portfolio of over 50 venture capital investments held jointly by United Internet and Global Founders Fund GmbH, the personal investment vehicle of Oliver Samwer and his brothers. It includes minority stakes in companies such as:
– games maker Goodgame Studios;
– online travel sites such as Traveloka and Travelbird;
– online marketplaces Yemek Sepeti and DaWanda; and
– financial technology companies Kreditech, Borro and SocietyOne.
As part of this transaction, the equity participation of Global Founders Fund in Global Founders Capital, valued at €153m, will also be contributed into Rocket in exchange for new shares, which will bring Global Founders Fund’s stake in Rocket to 53.7%. The total value of the new funds invested and the Global Founders Capital portfolio is €588m.
The investment and contributions imply a €4.3 billion post-transaction valuation for Rocket. Ralph Dommermuth, CEO of United Internet, will become a member of Rocket’s nine-person Supervisory Board.
Following this investment, shares in Rocket will be held by:
United Internet (10.7%),
Investment AB Kinnevik (18.5%),
Access Industries (8.5%),
Philippine Long Distance Telephone Company (8.6%) and
the Global Founders Fund (53.7%).
United Internet is an Internet services company that operates established brands such as 1&1, GMX, WEB.DE, united-domains, Fasthosts, arsys, InterNetX, Sedo and affilinet. It has 6,700 employees, of which around 2,000 are engaged in product management, development and data centers.