TeamViewer's $720M 1E Acquisition Backfires as Stock Plummets 27%
TeamViewer completed its acquisition of British IT automation firm 1E in late January 2025 for $720 million. The deal, however, triggered a sharp drop in the company's share price and prompted analysts to revise growth expectations downward. Since the start of the year, TeamViewer's stock has fallen by roughly 27 percent. The purchase of 1E followed a challenging period for the UK-based firm. The Trump administration's DOGE initiative had forced 1E to slash prices and delay a key project with the U.S. Department of Veterans Affairs. Despite these hurdles, TeamViewer moved forward with the deal.
In 2025, TeamViewer reported a five percent rise in currency-adjusted pro forma revenue, reaching €767.5 million. Growth was driven largely by the enterprise segment, where annual recurring revenue climbed by 19 percent. However, the SME division saw churn increase to 16.4 percent in the final quarter of the year.
Adjusted EBITDA margins for 2025 stood at 44.3 percent, slightly above the 43 percent target set for 2026. Yet, the company revised its revenue growth forecast for the coming year, cutting it from five percent to a range of zero to three percent. Morningstar responded by lowering its fair-value estimate for TeamViewer from €9.90 to €6.90, citing currency pressures—including a 2.8 percentage-point hit from DOGE-related headwinds—and the reduced outlook.
In February 2026, TeamViewer named Tim Koubek as President of TeamViewer Americas. The appointment came as the company worked to stabilise operations following the acquisition and market reaction. The $720 million acquisition of 1E has reshaped TeamViewer's financial outlook for 2026. With lower growth projections, higher churn in the SME sector, and ongoing currency challenges, the company now faces a more cautious market. Analysts still consider the stock slightly undervalued, though margins remain strong at around 43 percent.
