Rocket Internet Sells 10.7% Stake to United Internet for $582 Million

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Seems like dream come true for 2007 founded Internet company builder Rocket Internet which has sold a 10.7% stake for $582 million to United Internet .

United Internet’s investment consists of €333 million in cash and €102 million represented by United Internet’s equity participation in the portfolio of Global Founders Capital funds (“Global Founders Capital”).

The $582 or €435 million for a 10.7% stake in Rocket Internet comes just days after the firm raised $445 million from the Philippines Long Distance Telephone (PLDT ) which saw the firm worth $4.45 billion. This round will increase the Berlin based company’s value by $1 Billion to $5.7 billion.
According to Oliver Samwer, co-founder and CEO of Rocket Internet,“Rocket and United Internet share a long-term approach to value creation from the growth of Internet services. We are very pleased to receive this vote of confidence in our ability to generate value from one of Europe’s most successful Internet entrepreneurs and companies. We look forward to deploying the fresh capital to grow our platform and businesses around the world, and are pleased to be gaining stakes in certain businesses that are well aligned with our focus sectors and geographies.

Global Founders Fund and United Internet have been partners for seven years and have led joint investments in consumer Internet and technology businesses through Global Founders Capital. The latest deal brings the total funds raised and the Global Founders Capital portfolio to €588 million, implying a €4.3 billion post-transaction valuation for Rocket.

United Internet’s investment will be in newly issued shares by Rocket, of the same class and bearing the same rights as shares held by current Rocket investors and Ralph Dommermuth, founder and CEO of United Internet, will become a member of Rocket’s nine-person Supervisory Board.Dommermuth said,“We’ve partnered with Oliver Samwer for several years and jointly made a number of highly successful early stage investments in consumer internet and technology businesses in Germany and internationally. I have been very impressed by the quality and scale of Rocket and its network of companies and we are excited to support the further development of the group with additional growth capital. Our investment is strategic and long-term in nature and we look forward to working with the Rocket team and the other shareholders going forward.”

Following this investment, in addition to United Internet (10.7%), shares in Rocket will be held by 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 runs internet services compnanies such as 1&1, GMX, WEB.DE, united-domains, Fasthosts, arsys, InterNetX, Sedo and affilinet and has over 6,700 employees.

Rocket Internet’s, MTN’s and Millcom’s Africa Internet Holding (AIH) runs Jumia, Lamudi, EasyTaxi, Kaymu, Hellofood, Lendo, Jovago among others in Africa.

 

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