(Bloomberg) — TeamViewer SE, a maker of remote-working software, agreed to buy 1E from Carlyle Group Inc. for $720 million.
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The acquisition — TeamViewer’s biggest ever — is expected to close in early 2025 after regulatory approvals are obtained, the Goeppingen, Germany-based company said in a statement Tuesday, adding that the move increases its footprint in North America. 1E’s US customers include HP and Nike Inc.
TeamViewer’s shares fell as much as 14% on Tuesday in their biggest intraday decline in more than a month. Shares have lost 22% this year, giving the company a market value of about €1.9 billion ($2 billion).
Carlyle acquired a majority stake in 1E in 2021 with the company’s founder, Sumir Karayi, retaining a significant minority stake, according to a statement at the time. Carlyle reaped a 3.5-times return on the exit, according to people familiar with the matter, who asked not to be identified as the information is private. The terms of the deal weren’t disclosed.
1E provides real-time diagnosis, remediation and automation to fix issues at more than 500 organizations in 42 countries. The deal marks the fourth exit for Carlyle Europe Technology Partners this year, according to Fernando Chueca, a managing director at the fund.
“We were preparing the asset for an exit next year, but ended up receiving an unsolicited proposal from TeamViewer, which we decided to entertain,” Chueca said in an interview.
The combination pairs 1E’s automated remediation software that detects IT issues with TeamViewer’s remote-work software, allowing users to get support quickly when problems arise.
1E Chief Executive Officer Mark Banfield will become a member of TeamViewer’s board and chief commercial officer, according to Tuesday’s statement. TeamViewer also plans to appoint 1E’s Chief Marketing Officer Stephen Tarleton in the same role, it said.
TeamViewer, which raised almost €2 billion in its 2019 initial public offering, is run by Oliver Steil, an electrical engineer who joined from private equity firm Permira, which previously controlled the company.
“We want to be this one-stop-shop for super intelligent digital workplace management optimization,” Steil said in an interview. “Now we have a full suite to detect problems automatically where possible and implement proactive measures.”
Steil ruled out further acquisitions in the near term. “I think for the time being, that’s a very good combination, which we will work on and realize synergies,” he said.
–With assistance from Will Davies, Paul Jarvis and Michael Hytha.
(Adds more details on the deal and comment from Carlyle’s Chueca from fourth paragraph.)
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