TeamViewer (TMV) M&A Announcement summary

Deal rationale and strategic fit

• Combines TeamViewer's remote connectivity with 1E's DEX platform, creating an industry leader in digital workplace management and intelligent endpoint management.

• Expands total addressable market into multi-billion euros, driven by digital transformation, hybrid work trends, and a strong North American presence.

• 1E brings a strong enterprise-focused customer base, with 99% of ARR from enterprise clients and a third of the Fortune 100 as customers.

• Enables a one-stop shop for IT/OT operations, supporting proactive IT operations and digital transformation.

• Management continuity is ensured, with 1E’s CEO joining as Chief Commercial Officer and other leaders joining the senior team.

Financial terms and conditions

• All-cash, cash-free, debt-free transaction at an enterprise value of $720 million, financed through existing credit lines and new debt.

• Implied ARR multiple is 9.2x for September 2024 and 8x for full year 2025.

• Pro forma net leverage expected at 3.3x at closing, targeted to fall below 2x by end of 2026.

• 1E reported $77 million ARR (+26% YoY) and $69 million revenue with a 26% adjusted EBITDA margin as of September 2024.

• Share buybacks unlikely before 2027.

Synergies and expected cost savings

• Significant cross-selling opportunities leveraging TeamViewer’s 4,500 enterprise customers and 1E’s 290 enterprise clients.

• Revenue synergies estimated at €10 million in 2026 and €25 million in 2027, with potential for further growth.

• Unified go-to-market strategy and expanded partnership network to drive joint sales and market penetration.

• No cost synergies planned; focus is on additive growth and leveraging complementary teams and resources.