LONDON â€" Deutsche Telekom said on Thursday that it would sell a 70 percent stake in the online classified advertising company Scout24 to the private equity firm Hellman & Friedman of San Francisco for 1.5 billion euros, or about $2 billion, in cash.
The German telecommunications company will retain a 30 percent stake in Scout24 when the transaction closes, which is expected to be in the first quarter of 2014. The deal values the business at €2 billion.
“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,†said René Obermann, Deutsche Telekom’s chief executive.
The deal, which is subject to regulatory approval, represents the latest sale by a European telecommunications company as the industry consolidates and companies look to streamline their operations.
Earlier this month, PPF Group, which is controlled by the billionaire Petr Kellner, agreed to buy a controlling stake in the Czech Republic operations of Spanish telecommunications company Telefonica for €2.5 billion.
On the same day, the French conglomerate Vivendi sold its 53 percent stake in the Moroccan company Maroc Telecom to Emirates Telecommunications, or Etisalat, for €4.2 billion.
In September, the British telecom company Vodafone agreed to sell its 45 percent stake in Verizon Communications’ wireless unit in the United States for $130 billion, the largest deal so far this year.
The American telecom giant AT&T is also looking at possibly making acquisitions in Europe as early as next year.
Timotheus Höttges, Deutsche Telekom’s chief financial officer, said the Scout24 transaction allows the company to pass along value to its shareholders immediately, while still retaining a meaningful equity stake for profits in the future.
The buyer, Hellman & Friedman, invests in a variety of areas, including financial services, software and marketing. Its investments include the television ratings and market research company Nielsen, the reinsurer Paris Re and Kronos, an employment software provider.
“We see tremendous growth potential for the company, and look forward to continuing the Scout24 growth story over the years to come,†said Patrick Healy, deputy chief executive of Hellman & Friedman.
Goldman Sachs and Jefferies were financial advisers on the deal, while Hengeler Mueller acted as legal adviser to Deutsche Telekom.
Mark Scott contributed to this story.
