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Deutsche Telekom sells 70 percent of Scout24 to Hellman & Friedman

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  • René Obermann: “Hellman & Friedman is the right partner to further develop Scout24”
  • Scout24 valued at an Enterprise Value of EUR 2 billion
  • Deutsche Telekom will receive cash proceeds of approx. EUR 1.5 billion

Deutsche Telekom AG (“Deutsche Telekom” or “DTAG”) announced the signing of a definitive agreement to sell a 70 percent stake in Scout24 Holding GmbH (“Scout24” or the “Company”) to Hellman & Friedman LLC (“H & F”) at an Enterprise Value of EUR 2 billion. Deutsche Telekom will retain a 30 percent stake in the Company. The transaction, expected to close in the first quarter of 2014, will generate cash proceeds at closing of approximately EUR 1.5 billion. The transaction is subject to authority approvals and other customary closing conditions. The partial sale of Scout24 is a cornerstone transaction for the online investment strategy pursued by Deutsche Telekom over the past decade. Under Deutsche Telekom’s ownership, Scout24 successfully developed Germany’s leading online classifieds business including the core ImmobilienScout24 and AutoScout24 franchises. Deutsche Telekom will benefit from a meaningful participation in the future value creation of Scout24. In partnering with H & F, Scout24 will benefit from the deep experience of one of the most successful investors in Digital Media, enabling it to continue its strong track record of growth and innovation. René Obermann, CEO of Deutsche Telekom noted: "We are extremely pleased to announce this transaction which represents the partial realization of the significant value we have created in the online investment strategy we have pursued over the last years. With Hellman & Friedman we have found the right partner to further develop Scout24. H & F is one of the leading investors in digital, internet and people businesses and has an outstanding track record in value creation with corporate partners. We are very confident in the prospects for Scout24 under the stewardship of H & F in the years to come.” Timotheus Höttges, CFO and CEO designate of Deutsche Telekom added: “This exceptional outcome is the result of a lengthy, complex and highly competitive process that started in 2012. We chose this 70/30 partnership to allow us to deliver this outstanding result to our shareholders, while gaining the right partner for the future. We will retain a meaningful equity stake with substantial appreciation opportunity. This transaction compliments our track record of smart, value accretive deals over the last few years that bring Deutsche Telekom forward.“ Patrick Healy, Deputy CEO of Hellman & Friedman LLC said: "We are thrilled to enter this unique partnership with Deutsche Telekom and Scout24. Deutsche Telekom showed real vision when it acquired the Scout24 Group in 2004. Over the past years, Scout24 has become one of the most respected online platforms in Europe. We see tremendous growth potential for the company, and look forward to continuing the Scout24 growth story over the years to come.”

Dr. Martin Enderle, CEO of the Scout24 Group, added: “We have created a leading online company on the European market and we look forward to writing the next chapter in our story with Hellman & Friedman,” said Dr. Martin Enderle, CEO of the Scout24 Group. “With its 30 percent stake, Deutsche Telekom is showing its confidence in the future positive development of the Scout24 Group.” Goldman Sachs and Jefferies acted as financial advisors and Hengeler Mueller acted as legal advisor to Deutsche Telekom.

This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. They are generally identified by the words “expect,” “anticipate,” “believe,” “intend,” “estimate,” “aim,” “goal,” “plan,” “will,” “seek,” “outlook,” or similar expressions and include generally any information that relates to expectations or targets for revenue, adjusted EBITDA, EBITDA or other performance measures. Forward-looking statements are based on current plans, estimates, and projections. They should therefore be considered with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom's control. If these risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, results may be materially different from those expressed or implied by such statements. Deutsche Telekom can offer no assurance that its expectations or targets will be met. Without prejudice to existing obligations under capital market law, Deutsche Telekom does not assume any responsibility for updating forward-looking statements by taking new information or future events or other matters into account.

About Deutsche Telekom Deutsche Telekom is one of the world’s leading integrated telecommunications companies with 140 million mobile customers, over 31 million fixed-network lines and more than 17 million broadband lines (as of September 30, 2013). The Group provides products and services for the fixed network, mobile communications, the Internet and IPTV for consumers, and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in around 50 countries and has 230,000 employees worldwide. The Group generated revenues of EUR 58.2 billion in the 2012 financial year - more than half of it outside Germany (as of December 31, 2012). About Scout24: Scout24 is one of Europe's leading groups of companies for online market places. The six marketplaces of the Scout24 Group - ImmobilienScout24, AutoScout24, FriendScout24, FinanceScout24, JobScout24 and TravelScout24 - are present in 22 countries As a strong partner, Scout supports its customers in important decisions, in particular in the fields of housing, mobility, partnership and finance. Every month, around 13 million Internet users place their confidence in the services provided by the Scout24 Group, which is a part of the Deutsche Telekom Group. Further information is available under www.scout24.com. About Hellman & Friedman Hellman & Friedman LLC is a leading private equity investment firm with offices in San Francisco, New York and London. Since its founding in 1984, Hellman & Friedman has raised, and through its affiliated funds, managed over USD 25 billion of committed capital. The firm focuses on scale investments in superior business franchises and serving as a value-added partner to management in select industries including internet & digital media, software, business & marketing services, financial services, media, healthcare, and energy & industrials. H & F has invested over USD 2.5 billion in equity capital in the Digital Media and Internet sector including investments in DoubleClick, Getty Images, Web Reservations, Internet Brands. For more information on Hellman & Friedman, visit www.hf.com.

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