US private equity firm Warburg Pincus is acquiring a third of German web hosting company 1&1 Internet, which is part of United Internet, for around €450 million. The deal values 1&1 Internet at €2.55 billion.

Reuters reports that an as yet unformed holding company of Warburg Pincus will handle the acquisition with a possible IPO for the company in the future. United Internet will continue as majority shareholder.

“The transaction offers 1&1 Internet SE flexibility with regard to future strategic options, including a potential IPO in the coming years,” said United Internet but offered no other details.

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