Apax, the UK private equity firm, will sell 50% of German telecoms firm Versatel to raise €800m ($1.1bn), less than two years after buying the business for €565m.

Credit Suisse and JP Morgan are leading the deal which will see half of the flotation generated by a capital increase, and the other half through the sale of Apax-owned shares. The company is valued at €1.8bn, according to a spokesman.