OREANDA-NEWS. Deutsche Telekom has concluded an agreement with Str?er SE for the sale of the online platform t-online.de and the digital marketing company InteractiveMedia CCSP GmbH. The transaction will take the form of a capital increase of Str?er in return for the non-cash contribution of the two companies.

New shares in Str?er SE worth some EUR 0.3 billion will be issued to Deutsche Telekom AG, which corresponds to an equity investment of around 11 to 13 percent in the subsequently increased capital stock of Str?er. The shares are subject to a lock-up period of 12 months. Thanks to its equity investment in Str?er, Deutsche Telekom will profit from the expected increases in the value of the two companies within the new group in the future.

The transaction is awaiting approval by the Federal Cartel Office and is subject to other customary closing conditions. The transaction is expected to be closed in the fourth quarter of 2015.

The disposal is in line with Deutsche Telekom's strategy of establishing itself on the market as the leading European telecommunications provider. Part of this strategy involves considering options for increasing the value of business areas that can no longer be adequately developed within the Deutsche Telekom Group, through partnerships or disposals.

"Germany's high-reach online platform t-online.de and InteractiveMedia are ideally complemented by Str?er's activities in the marketing of online advertising space. We are delighted to have found a partner in Str?er which can further increase the potential of the portal and leverage substantial synergies on the market for both companies. We firmly believe that t-online.de and InteractiveMedia can sustainably support Str?er's cross-media marketing position on the German online advertising market and thereby contribute to Str?er's growth strategy. This is one of the reasons we have decided to receive the purchase price in shares," said Niek Jan van Damme, Member of the Deutsche Telekom Board of Management and Managing Director of Telekom Deutschland GmbH.

With net revenue of EUR 721 million in the 2014 financial year, Str?er is one of the largest marketers of out-of-home and online advertising in Germany. In 2013, the company added the digital segment to its business in a move towards becoming an integrated and increasingly digital media company. With the flagship brands Str?er Digital Media, Str?er Mobile Media and Str?er Primetime, the company combines traditional and digital out-of-home advertising with the marketing of online displays, making it one of the first full-service providers covering the entire digital marketing value chain.

Udo M?ller, CEO of Str?er SE said: "The transaction is a clear game changer for Str?er and the German online advertising market. The merger in marketing is also a very important step for being able to ensure the future competitiveness of a German online marketing company in competition with global players. T-Online is an iconic brand in German digital business. We believe that we have the resources to continue successfully developing Europe's "most trusted online brand."

For Str?er, the Digital Segment is a central pillar of the corporate strategy and is the Group's main growth driver, accounting for 25 percent of the company's revenue. Str?er plans to increase the digital division's revenue contribution to 50 percent over the next few years.

The t-online.de portal is one of the most-visited websites in Germany and also serves as a platform for t-online.de e-mail accounts and the Deutsche Telekom customer center. Telekom Deutschland GmbH will retain these services, which can continue to be used as usual without third-parties being able to access the content. The applicable legal conditions – for example on data protection – continue to apply. Following the transaction, nothing will change neither for customers of Deutsche Telekom, nor for readers of the t-online.de news portal.

Deutsche Telekom was advised by Deutsche Telekom Capital Partners and BNP Paribas.

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, the actual 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 obligation to update forward-looking statements to take new information or future events into account or otherwise.

About Deutsche Telekom
Deutsche Telekom is one of the world's leading integrated telecommunications companies with around 151 million mobile customers, 30 million fixed-network lines and more than 17 million broadband lines (as of December 31, 2014). The Group provides fixed-network, mobile communications, Internet and IPTV products and services for consumers and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in more than 50 countries and has approximately 228,000 employees worldwide. The Group generated revenues of EUR 62.7 billion in the 2014 financial year – more than 60 percent of it outside Germany.

About t-online.de
With a reach of more than 25 million users per month, t-online.de is Germany's leading advertising-financed digital offering, with news, advice and shopping content (AGOF Internet Facts 04-15). 255 employees publish around 500 articles and videos every day – well-informed, visually-powerful, and free of charge – for all screens, 365 days a year.

About InteractiveMedia
InteractiveMedia, one of the largest digital marketing companies in Germany, with some 60 well-known online and mobile media brands (such as t-online.de, gutefrage.net, kicker online and NetDoktor.de) not only offers wide reach and target-group-relevant content (e.g., on sport or health), but also premium and concept marketing for individual brand experiences. 166 employees market the innovative advertising formats.

About Str?er
Str?er SE is a major provider of out-of-home and online advertising, and offers its advertising clients individualized and fully integrated premium communications solutions. In this way, Str?er sets pioneering standards of innovation and quality in the area of digital media and opens up new opportunities for its advertising clients to target their customers. The Str?er group markets some 290,000 out-of-home advertising faces and several thousand websites. With net revenue of EUR 721 million for the 2014 financial year, Str?er SE is one of the largest providers of out-of-home advertising in Europe in terms of revenue. The Str?er group employees some 2,400 employees at more than 70 locations.