TeamViewer drops 12% on deal to buy 1E from Carlyle for $720M

Investing.com -- TeamViewer AG (ETR:TMV ) said Tuesday it has reached an agreement to acquire London-based IT firm 1E for an enterprise value of $720 million.

The deal was made with Carlyle Europe Technology Partners, a division of Carlyle Group Inc (NASDAQ:CG ), and is expected to be finalized early next year.

Following the announcement, shares of Teamviewer fell 12% in European trading.

CEO Oliver Steil revealed during a press call that the acquisition is projected to contribute 10 million euros ($10.56 million) in 2026 and increase to 25 million euros in the following year.

“We have long believed that TeamViewer has struggled to define an attractive mid to long-term equity story for investors, as the business growth has slowed,” Jefferies analysts said.

“With 1E, TeamViewer is making a sizeable bet on a new market area which could help move the equity story forwards.”

Jefferies anticipates that the market's initial reaction to the acquisition could be somewhat negative, as it might reinforce existing concerns about the future performance of TeamViewer's core business.

Further, the deal involves a significantly higher cost multiple compared to TeamViewer's core operations.

Nonetheless, the analysts noted that as the forward roadmap for the product becomes more defined, "this may prove (over time) an important and necessary first step to strengthen the TeamViewer equity story and stimulate broader investor interest."

1E specializes in software solutions aimed at identifying IT problems. Notable customers listed on its website include Adidas (OTC:ADDYY ) and AT&T (NYSE:T ).

TeamViewer’s management views the acquisition as a highly synergistic move, strengthening their capabilities from "proactive autoremediation capabilities to remote expert support, enriched by further AI development."

1E’s DEX platform includes features such as real-time diagnostics and remediation, monitoring and analytics for anomaly detection and insights, as well as AI-driven automation designed to predict and resolve recurring issues.

Source: Investing.com