UPDATE 1-EQT launches sale of German utility services provider SAG - sources

* EQT hopes to fetch about 1 billion euros for SAG - sources

* Deutsche Bank advises on sale, which starts Sep - sources

* EQT also selling tech groups Automic, Internetstores - sources (Adds detail valuation, other deals)

FRANKFURT, June 24 (Reuters) - Buyout group EQT is launching the sale of German utility services provider SAG, which may fetch roughly 1 billion euros ($1.1 billion), three people familiar with the matter said.

The private equity investor has asked Deutsche Bank to explore options for the business, which posted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of about 90 million euros in the last 12 months and may be valued at 10 to 12 times that, they added on Friday.

SAG is one of several assets that EQT is currently divesting in Germany, as the buyout group hopes to benefit from strong asset prices.

In a separate auction, EQT is selling business automation specialist Automic with the help of investment banking boutique Arma Partners, in a deal which may fetch 10-12 times its expected EBITDA of 35 million euros or up to 420 million euros, the people said.

Additionally, EQT has received bids for its online bicyle retailer Internetstores - known for the platform - which it has put on the block with the help of William Blair and for which it has asked to see a price of about 200 million euros or 14 times expected core earnings, they added.

EQT and Deutsche Bank declined to comment, while Arma Partners and William Blair were not immediately available for comment.

The SAG sale, which is set to officially launch after the summer break, may attract companies from the construction sector, such as Strabag, Vinci, Bouygues , Spie and Caverion as well as other private equity groups.

SAG, formerly the energy-related activities of RWE Solutions, constructs and runs energy grids, employs roughly 8,000 staff and has annual sales of about 1.4 billion euros. It was founded in 1916 as Starkstrom Aktiengesellschaft to advance the electrification of Germany by building infrastructure.

EQT, which bought SAG in 2008, last year injected some fresh equity into the group after SAG ran into trouble with some offshore projects and as it saw its French business suffer from the weak economy.

Since then, SAG’s business has rebounded, and its 2016 EBITDA is expected to be double that of 2014, one of the people said.

$1 = 0.8988 euros Editing by Maria Sheahan and Georgina Prodhan