Bridgepoint and Warburg Pincus are joining the growing number of private equity firms eyeing deals in the recovering German market, vying for €300m ($440m) web hosting company Strato.

The two firms face competition from buyout rivals and trade buyers in the auction of Strato by German media company Freenet, three people familiar with the matter said. Bridgepoint did not respond to request for comment. Warburg Pincus declined to comment.