TeamViewer acquires 1E in USD $720 million landmark deal

TeamViewer has announced the acquisition of 1E, a leader in digital employee experience management tools, for an enterprise value of USD $720 million.

TeamViewer, known for its remote connectivity and digital workplace solutions, has reached an agreement with Carlyle Europe Technology Partners to acquire London-based 1E. This cash-free, debt-free deal is expected to close in early 2025 following regulatory approval. The acquisition aims to enhance TeamViewer's positioning in the digital workplace market by integrating its remote access capabilities with 1E's autonomous IT platform.

Oliver Steil, Chief Executive Officer of TeamViewer, commented, "With the acquisition of 1E, TeamViewer will enter a new era of intelligent endpoint management by providing customers with a smart solution for preventing and tackling technology issues with minimal friction."

"Together with 1E, we are ideally positioned to meet growing customer demands for more real-time, automated, and proactive approaches in the IT and the OT space.

TeamViewer's largest acquisition to date marks an important step forward to accelerate enterprise growth, drive innovation and deliver greater value to our customers. We are excited to work with Mark, Stephen, and the fantastic 1E team."

The acquisition will aim to create an extensive offering designed to address IT issues comprehensively, spanning proactive auto-remediation and remote expert support. It will further TeamViewer's strategy of delivering a seamless IT operations experience enhanced by AI development.

1E currently provides a digital employee experience platform offering real-time visibility across enterprise IT landscapes. The platform automates remediation directly at the endpoint, which is expected to enhance IT performance and employee satisfaction while reducing downtime and costs. Under the leadership of Chief Executive Officer Mark Banfield, 1E has seen profitable revenue growth with an annual recurring revenue of USD $77 million as of September 2024, with enterprise customers accounting for over 99 per cent of sales.

Mark Banfield, CEO of 1E, stated, "1E's driving mission is to create innovative IT solutions that shape the future of work. Together with TeamViewer, we can accelerate that mission by integrating our DEX platform with world-class connectivity solutions. As two companies with truly complementary products and technologies, TeamViewer is the ideal partner to help us scale our offerings and create an intelligent endpoint management leader. I'm excited to join TeamViewer's management board as we enter this next chapter of our joint growth story, and I would like to thank the team at Carlyle who have supported us on our journey so far."

The acquisition is anticipated to strengthen TeamViewer's North American presence and extend its potential reach into small and medium-sized businesses. It also aims to improve the company's enterprise offerings by expanding services to existing clients such as Airbus, Coca-Cola, and Ford.

Ralf W. Dieter, Chairman of TeamViewer's supervisory board, said, "This transformational combination of TeamViewer and 1E will enable further significant expansion into the digital workplace market and set up TeamViewer for continued success."

"With the extension of Mei's term and the addition of Mark to the management board, we can ensure clarity and stability from our strong leadership team to deliver growth and increase stakeholder value for the future."

Significant leadership changes are planned following the acquisition. Mark Banfield will join TeamViewer as Chief Commercial Officer, and 1E's Chief Marketing Officer Stephen Tarleton will assume the same role within TeamViewer. Additionally, Mei Dent's three-year contract extension as Chief Product and Technology Officer has been confirmed to facilitate ongoing strategic development.

TeamViewer aims to complete the acquisition with a net leverage ratio of approximately 3.3 times adjusted EBITDA, planning to reduce this to below 2.0 times by the end of fiscal year 2026.

Financing for the acquisition will come from existing credit lines and new debt instruments.