UK-based 1E, which detects software problems on desktop PCs remotely, has been acquired by Germany-based remote-working company TeamViewer for $720 million on a cash-free, debt-free basis.
This is TeamViewer’s biggest-ever acquisition and will allow it to expand its North American market. 1E, which was sold to Carlyle Group in 2021, has several large US customers including HP and Nike.
According to a statement issued during its sale in 20221, Carlyle acquired a majority stake in 1E in 2021, with the company’s founder, Sumir Karayi, retaining a significant minority stake. The terms of the deal — which is expected to go through, subject to regulatory approval — were not disclosed.
TeamViewer’s shares were down 11.89% today on the Frankfurt stock exchange, and down 18.46% over the past year. The company is now valued at around €2 billion ($2.1 billion).
By enabling large organizations to update their Windows systems automatically, 1E’s products reduce the cost of running software applications, typically across desktop PCs on corporate networks. TeamViewer’s remote-work software similarly provides software support.
1E CEO Mark Banfield will join the TeamViewer’s board and become chief commercial officer, according to a statement.
TeamViewer CEO Oliver Steil said in a statement: “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.”
1E said it has annual recurring revenue of $77 million (as of September 2024) with more than 99% of the sales coming from enterprise customers.
Karayi moved to the UK from India when he was 14. After attending a tough school, he decided to teach himself at home, eventually attaining a place at university. According to his LinkedIn profile he is now involved in philanthropy and is the AI Committee Lead, for the Boardwave membership organization.