The software provider TeamViewer wants to strengthen itself in its largest takeover to date with the company 1E from the financial investor Carlyle.
The company value of 1E in the deal amounts to 720 million US dollars (682 million euros), as the Göppingen company announced on Tuesday. TeamViewer boss Oliver Steil wants to stimulate growth with the acquisition. The company is financing the takeover with its own funds and new debt. This makes further share buybacks “unlikely” in the next two years, as Steil admitted. The share listed in the MDAX fell significantly.
After the start of trading via XETRA, the stock lost 6.4 percent to 11.73 euros, extending its previous annual loss to almost 17 percent. The price is already a long way from its former highs; during the Covid boom in the industry, the share price sometimes cost over 50 euros. Disappointed growth fantasies after the pandemic and expensive sponsorship contracts caused the price to collapse in the following years.
With 1E, Steil wants to round off its own offering for remote maintenance and networked devices: 1E offers software for automatically detecting and solving users’ IT problems. This fits in well with our own offering and is what TeamViewer has been missing so far, he said in a conference call with journalists. 1E is headquartered in London, but its customers are primarily in North America. The financial investor Carlyle secured the majority of 1E in 2021. The Bloomberg news agency had previously reported on a possible takeover by TeamViewer.
Steil said that after the completion of the takeover, which is targeted for early 2025, he initially expects an integration year. In 2026, sales synergies should reach 10 million euros, then in 2027 25 million euros. 1E has a recurring annual revenue of $77 million most recently and generates this almost exclusively with large customers. Cost synergies were not the aim of the takeover, added Steil.
According to Steils, 1E is growing by more than 20 percent annually and is profitable. For comparison: TeamViewer is still targeting currency-adjusted sales growth of 7 to 8 percent this year to up to 668 million euros.
For the takeover, TeamViewer will initially increase the debt ratio, measured by adjusted earnings before interest, taxes, depreciation and amortization, to more than three times. By the end of the 2026 financial year, debt is expected to fall back to less than twice operating profit.
With the takeover, 1E boss Mark Banfield will have a seat on the TeamViewer board; as so-called Chief Commercial Officer (CCO), he will then control and expand sales. The previous sales director, Peter Turner, announced in September that he did not want to extend his contract, which expires in July 2025.
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GÖPPINGEN (dpa-AFX)
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