TeamViewer AG Acquires 1E

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

The deal, made with Carlyle Europe Technology Partners (a division of Carlyle Group Inc (NASDAQ:CG)), is expected to close early next year. Following the announcement, TeamViewer's shares fell 12% in European trading.

CEO Oliver Steil stated during a press call that the acquisition is projected to add 10 million euros ($10.56 million) in 2026 and increase to 25 million euros in 2027.

Jefferies analysts expressed concerns, stating that TeamViewer has struggled to establish a strong mid to long-term equity narrative due to slowed business growth. They noted that the acquisition of 1E represents a significant investment in a new market area that could help improve TeamViewer's equity story.

Jefferies anticipates an initially negative market reaction to the acquisition due to heightened concerns about TeamViewer's core business performance and the high cost multiple involved relative to its core operations. However, they believe that as the product roadmap becomes clearer, this acquisition could play a critical role in strengthening TeamViewer’s equity narrative and attracting investor interest.

1E specializes in software solutions for identifying IT problems, serving notable clients such as Adidas (OTC:ADDYY) and AT&T (NYSE:T). TeamViewer management views the acquisition as synergistic, enhancing capabilities from proactive autoremediation to remote expert support and further AI development.

1E’s DEX platform offers features like real-time diagnostics, anomaly detection, monitoring, analytics, and AI-driven automation to predict and resolve recurring IT issues.