EQS-News: TeamViewer to acquire 1E, a leader in Digital Employee Experience

TeamViewer to acquire 1E, a leader in Digital Employee Experience

Strategic expansion into Digital Workplace Management

• Combines TeamViewer’s market-leading remote connectivity solutions with 1E’s world-class Digital Employee Experience (DEX) platform to ensure seamless IT operations and enhanced user experience
• Accelerates TeamViewer’s strategy to create an end-to-end offering for tackling IT issues, covering the full spectrum from proactive auto-remediation capabilities to remote expert support, enriched by further AI development
• Strengthens TeamViewer’s North American footprint, offering new opportunities for Enterprise customers with the potential to tap into SMBs, significantly expanding the total addressable market
• 1E is valued at an enterprise value of US$720m; the acquisition is expected to generate strong revenue synergies
• Adds to Management Board and Senior Leadership Team to enhance joint offering and drive innovation; 1E CEO Mark Banfield to become TeamViewer’s new Chief Commercial Officer

Goeppingen/Germany, 10 December 2024 – TeamViewer, a global leader in remote connectivity and digital workplace solutions, today announced the acquisition of 1E, a leader in Digital Employee Experience (DEX) management tools. TeamViewer has signed an agreement with Carlyle Europe Technology Partners (“CETP”), part of global investment firm Carlyle (NASDAQ: CG), to buy London-based 1E at an enterprise value of US$720 million on a cash-free, debt-free basis, which is expected to close in early 2025 after obtaining all necessary regulatory approvals. This transformational transaction positions TeamViewer as a strong player in the digital workplace market by integrating TeamViewer’s remote access and support expertise with 1E ’s autonomous IT platform. The combined offering enhances customer benefits by proactively preventing IT issues and providing efficient remote expert support to resolve them. Together with 1E, TeamViewer will deliver an industry-leading, one-stop-shop for IT operations, intelligent endpoint management and enhanced user experience in the digital workplace.

1E, with its c.300 employees, offers a leading DEX platform that delivers real-time visibility on enterprise IT landscapes, promptly identifying issues as they arise and automating remediation directly on the endpoint. This minimizes downtime, disruptions, and costs as well as enhances overall IT performance, employee experience, and satisfaction. The 1E team, led by Chief Executive Officer Mark Banfield, has on average delivered double-digit profitable revenue growth over the past three years, with annual recurring revenue of US$77 million (as of September 2024) and more than 99% of the sales coming from Enterprise customers.

This acquisition is expected to deliver a number of additional strategic benefits:

• Drive innovation and AI development: By integrating 1E’s category-leading DEX capabilities, TeamViewer is uniquely positioned to enable innovation and AI developments in the digital workplace space. The acquisition builds on TeamViewer’s recent launch of the AI-powered “Session Insights” feature, which has already laid the groundwork for broadening its offering across automated remote support. Together with 1E, TeamViewer can leverage these unique session insights to gain unparalleled visibility across devices and IT landscapes, enhance remediation capabilities and move into autonomous endpoint management.

• Expand total addressable market: This acquisition strengthens TeamViewer’s position to capture growth in the rapidly growing DEX market with the potential to extend this concept to the Operational Technology (OT) space. By tapping into the DEX market, TeamViewer will expand its combined total addressable market to a multi-billion-euro market, which is expected to grow at double digit rates.
• Accelerate Enterprise Growth: The acquisition of 1E accelerates TeamViewer’s enterprise growth, expanding its customer base and enhancing its ability to serve major global organizations. TeamViewer will now be able to offer more comprehensive solutions to its nearly 4,500 enterprise customers worldwide, including Airbus, Coca-Cola, Ford, Henkel, Siemens Healthineers, and Specsavers, further strengthening these relationships and delivering increased value. 1E’s strong customer base includes the US Department of Veteran Affairs, HP, Roche, Royal Bank of Canada, Nike and Novartis. The acquisition also offers the potential for TeamViewer to provide DEX solutions for SMB customers around the world.
• Strengthen Geographic Footprint and Realize Strong Revenue Synergies: The acquisition will also drive growth by expanding TeamViewer’s footprint in North America with the US being the largest market for TeamViewer and 1E, and positioning the group to introduce DEX solutions into the regions EMEA and APAC.

As part of the acquisition, TeamViewer will make several additions to the leadership team, effective upon closing of the transaction. Mark Banfield, CEO of 1E, will become a member of TeamViewer’s Management Board, and act as Chief Commercial Officer of the group. Additionally, TeamViewer intends to appoint Stephen Tarleton, Chief Marketing Officer of 1E, as its Chief Marketing Officer and a member of TeamViewer’s Senior Leadership Team. At the same time, TeamViewer’s Supervisory Board has agreed a three-year contract extension for Chief Product and Technology Officer, Mei Dent, to continue building on the excellent progress on TeamViewer’s Product and R&D strategy within the Management Board. All three leaders will support the alignment of TeamViewer’s and 1E’s commercial and product strategy and drive further growth. Together with 1E’s talent, TeamViewer will continue to innovate and enhance its capabilities in key strategic areas such as intelligent endpoint management and frictionless digital workplace.

“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,” said Oliver Steil, CEO of TeamViewer. “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.”

“1E’s driving mission is to create innovative IT solutions that shape the future of work,” said Mark Banfield, CEO of 1E. “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.”

“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,” said Ralf W. Dieter, Chairman of TeamViewer’s Supervisory Board.

Additional Transaction Details

TeamViewer will acquire 1E for an enterprise value of US$720 million¹, on a cash-free, debt-free basis. Financing will be provided via existing credit lines and new debt instruments. The transaction is expected to close in early 2025 after obtaining all necessary regulatory approvals and subject to customary closing conditions. After closing, pro-forma net leverage ratio is expected to be around 3.3x Adjusted (revenue) EBITDA. TeamViewer is targeting to reduce net leverage ratio to below 2.0x by the end of FY 2026.

¹ Equivalent to €686 million if US$720m converted to EUR at exchange rate of 1.0496

Analyst Call Details

TeamViewer will hold an analyst conference call this morning at 8:30 AM CET. The live audio webcast can be followed via https://www.webcast-eqs.com/teamviewer-2024-12. A recording will be available on the Investor Relations website at ir.teamviewer.com. The accompanying presentation is also available for download there.

The conference call may include forward-looking statements. See the cautionary information about forward-looking statements in the “important notice” section of this press release.

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About TeamViewer

TeamViewer is a leading global technology company that provides a connectivity platform to remotely access, control, manage, monitor, and repair devices of any kind – from laptops and mobile phones to industrial machines and robots. Although TeamViewer is free of charge for private use, it has more than 640,000 subscribers and enables companies of all sizes and from all industries to digitalize their business-critical processes through seamless connectivity. Against the backdrop of global megatrends like device proliferation, automation and new work, TeamViewer proactively shapes digital transformation and continuously innovates in the fields of Augmented Reality, Internet of Things and Artificial Intelligence. Since the company’s foundation in 2005, TeamViewer’s software has been installed on more than 2.5 billion devices around the world. The company is headquartered in Göppingen, Germany, and employs more than 1,500 people globally. In 2023, TeamViewer achieved a revenue of around EUR 627 million. TeamViewer SE (TMV) is listed at Frankfurt Stock Exchange and belongs to the MDAX. Further information can be found at www.teamviewer.com.

About 1E

Hundreds of organizations in 42 countries trust 1E to help them create a better Digital Employee Experience (DEX). The 1E Platform provides real-time diagnosis, remediation, and automation to proactively fix issues before they ruin the workday. Reduce costs, move faster, and increase employee happiness with 1E. For more information, visit1E.com.

Important notice

Certain statements in this communication may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties, including, but not limited to, those risks and uncertainties described in TeamViewer’s disclosures. You should not rely on these forward-looking statements as predictions of future events, and TeamViewer’s actual results may differ materially and adversely from any forward-looking statements discussed in these statements due to several factors, including without limitation, risks from macroeconomic developments, external fraud, lack of innovation capabilities, inadequate data security and changes in competition levels. TeamViewer undertakes no obligation, and does not expect to publicly update, or publicly revise, any forward-looking statement, whether as a result of new information, future events or otherwise.

All stated figures are unaudited.

This document contains alternative performance measures (APM) that are not defined under IFRS. The APMs (non-IFRS) can be reconciled to the key performance indicators included in the IFRS consolidated financial statements and should not be viewed in isolation, but only as supplementary information for assessing the operating performance. TeamViewer believes that these APMs provide an additional, deeper understanding of the Company’s performance. TeamViewer has defined each of the APMs in its most recent regular financial disclosures.

Contact TeamViewer 

Press Contact 1E

Namita Tendolkar
Corporate Communications Manager
press@1E.com