FRANKFURT Private equity fund Warburg Pincus agreed to buy a third of United Internet’s webhosting business 1&1 Internet in a deal valuing the business at 2.55 billion euros ($2.82 billion), the German internet provider said on Tuesday.

A holding company of Warburg Pincus, which is still to be founded, will pay up to 450 million euros for the stake in the business.

“The transaction offers 1&1 Internet SE flexibility with regard to future strategic options, including a potential IPO in the coming years,” United Internet said.

($1 = 0.9051 euros)

(Reporting by Maria Sheahan; Editing by Edward Taylor)

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