The Carlyle Group and Mercapital to Sell Arsys to 1&1

Continuous investment strengthens Arsys’ reputation and positioning as a recognised provider of ICT Services

Barcelona - Global Alternative Asset Manager The Carlyle Group (NASDAQ: CG), and leading Spanish Private Equity firm, N+1 Mercapital, today agreed to sell Spanish ICT Service provider Arsys to the United Internet (ISIN: DE0005089031) subsidiary 1&1, a global leader in web hosting and domain services. Further details of the transaction were not disclosed and the sale is expected to complete within the next week. Arsys is amongst the leading European providers of web hosting and domain registration services and a pioneer in Cloud Computing, having developed one of the first European Cloud Hosting platforms. Founded in Logroño, Spain, in 1996 by Luis Ignacio Cacho and Nicolás Iglesias, Arsys employs around 300 staff and has over 150,000 paying customers across 100 countries. With commercial activity in Spain, France and Portugal, Arsys generated revenues of over €40 million in 2012.

The Pan-European growth capital and buyout fund Carlyle Europe Technology Partners, L.P and N+1 Mercapital reached an agreement to acquire Arsys in February 2008 as a platform for industry consolidation in the ICT Service sector. Carlyle’s investment in Arsys helped improve the professionalization and the delivery of industry leading products and services.

Faustino Jimenez, CEO at Arsys, said “We are delighted to have partnered with Carlyle. Carlyle’s investment has supported our growth, helped us to consolidate our loyal customer base and realised the potential of the company by strengthening our competitive position. Arsys has come a long way in the last few years, something which would not have been possible without strong shareholder engagement and support for the company’s management and Arsys’ employees”.  

Fernando Chueca, Director with Carlyle Europe Technology Partners commented, “Arsys is a good example of Carlyle value creation. Partnering with the management team in 2008 we had the joint vision to evolve the company’s activities through strong commitment to quality services and product innovation, particularly in the field of Cloud Computing where the company has positioned itself as a market leader”.

To David Estefanel, Managing Partner of N+1 Mercapital, ‘The integration of Arsys is 1&1 has been possible due to the strengths of the company, and the success of the strategy carried out since our entry. More importantly, it is also a clear proof of the growing interest of international investors in Spain, where there still a large number of middle market companies which, as Arsys, are flexible, competitive, and leaders in their market niche’.

Ralph Dommermuth, CEO of United Internet, said that “with this investment 1&1 further strengthens its offering and position as global leader in web hosting and cloud computing services. At the same time, we are strengthening ourselves in Spain with the addition of skilled staff, an established brand, and a large client base.”

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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $180 billion of assets under management across 118 funds and 81 fund of funds vehicles as of June 30, 2013. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Global Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,400 people in 34 offices across six continents.

Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market-commentary

About Mercapital
N+1 Mercapital is the leading Private Equity firm in Spain, which also has a strong presence in Latin America. Since its inception in 1985 it has invested over Eur 1.8 bn in more than 100 companies, and has offices in Madrid, Sao Paulo, Mexico City and Bogotá. Its investment focus are middle market companies from Spain and Latin America, with internationalionbalization strategis that N+1 Mercapital can support with its sector expertise, contact network, and local presence.

About Arsys
Arsys is a European provider of ICT services, including Internet Presence, Cloud Computing and Managed Hosting Solutions. With more than 1.5 million active services and over 150,000 paying clients, Arsys leads the Spanish market in professional ICT solutions for businesses. Arsys is among the leading European companies in technology and innovation and a pioneer in developing the first European Cloud Hosting platform.

Arsys is present in Spain, France and Portugal, has customers in 100 countries and employs more than 300 people.

Web: www.arsys.net

Social Media: Twitter (@arsys), Facebook and Google+ pages.

Media Contacts

The Carlyle Group Press Office – Kreab & Gavin Anderson Spain
Katarina Sallerfors
Mobile. + 34 687 837 911– T. +34 91 702 72 98
e-mail: ksallerfors@kreabgavinanderson.com

The Carlyle Group
Catherine Armstrong
+44 20 7894 1632
Catherine.Armstrong@carlyle.com

N+1 Mercapital- Dedalo Comunicación
David G. Adame
Tel: +34 91 131 95 70
adame@dedalocomunicacion.com         

N+1 Mercapital
Eusebio Martin
+34 915 578 008
Eusebio.martin@nmas1mercapital.com

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