After the Napoleonic Wars, the Holy Roman Empire (the First Reich) was dismantled. The tiny kingdoms of the HRE were organized into larger, simpler states. There were two powerful German countries that could have united the German people. Prussia, and Austria. Prussia beat Austria and Denmark, forming the North German Confederation with the Northern German States. Eventually, the NGC would control the states in the South, such as Bavaria. However, one piece of territory known as Elsass-Lothringen was still under French control. The German Empire would then stomp over France so badly that they actually proclaimed a unified Germany inside a French palace in Versailles.
(below) The Formation of Germany inside Paris
(above) The British Representation of the Scramble of Africa
The German Empire would be considered an Empire, but they would not get any colonial territory until 1881, during the scramble for Africa. Soon, they would have colonies all over the world.