Baker McKenzie advised DNS:Net Internet Service GmbH (DNS:Net) and its shareholders, DBAG Expansion Capital Fund and founder and majority shareholder Alexander Lucke, on the sale of a majority stake in DNS:NET to UK-based 3i Infrastructure plc. DNS:Net is a strongly growing provider of fibre-optic internet connections and the second-largest provider of VDSL connections in Brandenburg and a leader in connecting new residential properties in Berlin to its own fiber-optic network.
In the agreed sale to 3i Infrastructure plc, the minority shares of DBAG Expansion Capital Fund (DBAG ECF) in DNS:Net, including the shares held by DBAG, were sold, as well as further shares held by Mr. Lucke, who will continue to hold a 40% stake in DNS:Net.
The transaction, which is subject to regulatory approvals, is expected to close in the second quarter of 2021. The parties have agreed not to disclose details of the purchase price.
DNS:Net Internet Service GmbH (DNS:Net) was founded in 1998 in Berlin. Today, the company provides telecommunication and internet services for private and business customers using owned and leased fibre-optic network infrastructures. Its data centre services for business customers also make use of owned and leased infrastructures in high-security sites at key internet nodes.
3i Infrastructure plc, an investment company listed on the London Stock Exchange, is a long-term investor in sustainable infrastructure companies. 3i Infrastructure plc invests in operating companies and projects, primarily in Europe, that generate long-term returns and capital growth.
Deutsche Beteiligungs AG, which is listed on the stock exchange, initiates closed-end private equity funds and invests - predominantly alongside DBAG funds - in well-positioned medium-sized companies with growth potential. DBAG focuses on those industrial sectors in which German SMEs are strong by international standards. An increasing share of the equity investments is in companies in the new focus sectors of broadband telecommunications, IT services/software and healthcare.
The global Corporate/M&A team of Baker McKenzie advises on more cross-border transactions than any other law firm. Most recently the team advised Cognizant on the acquisition of ESG Mobility, Paragon on the sale of NovumIP to Questel Group, TA Associates on the acquisition of a majority stake in IGEL, Embracer on the acquisition of Easybrain Limited, SK Telecom on a joint venture with Deutsche Telekom, Chr. Hansen Holding A/S on the acquisition of Jennewein Biotechnologie GmbH, DBAG on an investment in congatec Holding AG, SAP on the sale of the communication unit SAP Digital Interconnect to Sinch AB, Air Liquide on the sale of the Schülke Group to the Swedish financial investor EQT, METRO AG on the establishment of a strategic partnership with Wumei Technology Group, Bayer AG on the sale of its majority stake in the chemical park operator Currenta and Evonik on the sale of its methacrylate business to Advent International.
Legal advisor to DBAG:
Corporate/M&A: Dr. Ingo Strauss (partner, Dusseldorf)
Corporate/M&A/Energy: Dr. Heiko Gotsche (partner, Dusseldorf), Jana Upschulte (senior associate, Dusseldorf), Juan Garcia Jacobsen associate, Dusseldorf), Dr. Richard Stefanink (associate, Dusseldorf), Celina Anna Zaim (associate, Dusseldorf)
IT: Dr. Holger Lutz (partner, Frankfurt), Simone Rieken (senior associate, Frankfurt)
Public Law: Anahita Thoms (partner, Dusseldorf), Dr. Claire Dietz-Polte (counsel, Berlin), Alexander Ehrle (associate, Berlin)
Employment: Dr. Christian Reichel (partner, Frankfurt)
Tax: Christoph Becker (partner, Frankfurt)
Inhouse Legal DBAG:
Florian Döring, Head of Legal (M&A) and Investment Process, Matthias Döll, Director M&A and Corporate Law