🧠 Food for thought

Implications, context, and why it matters.

1E’s ARR decline reveals deeper integration and product-market risks than TeamViewer disclosed at acquisition

• TeamViewer agreed in Dec 2024 to buy 1E for $720 million, and the deal closed Jan 31, 2025 12. Management cited $77 million ARR as of Sep 2024 12. That implies roughly a 9.4x ARR multiple, which equals about 10% of pro forma (as if, including the acquisition) ARR of €756.8 million as of Q3 2025 23.
• ARR fell 2% year over year in Q3 2025 from churn and slow lead conversion (turning sales leads into signed deals) 2. Revenue also dropped 8% in constant currency (adjusted for exchange rate movements) 2. The slide worsened after close, not just integration snags.
• Management blamed transformation work and U.S. macro issues 2. 1E still posted 30% ARR growth and a 27% adjusted EBITDA margin in 2024 before the deal 3. External factors alone do not explain the drop.
• Turnaround delays that hit the short term outlook 2 hint at deeper product work. Joining 1E’s proactive Digital Employee Experience platform with TeamViewer’s reactive remote support may need tighter integration than the early “one stop shop” pitch 1.

Managed Service Providers (MSPs) and DEX competitors can target 1E’s enterprise customers during this uncertain transition period

• Customer list includes the U.S. Department of Veterans Affairs with a three year contract to manage over 500,000 endpoints (employee devices such as laptops and desktops) 3. Named users also include Pernod Ricard 4 and, per Apps Run the World, Signify N.V. with 36,824 employees 5. With revenue under pressure and ongoing change 2, some buyers may review vendors.
• Forrester flags Ivanti, Omnissa, and Tanium as DEX or End User Experience Management rivals 6. These firms can pitch stability, steady roadmaps, and low integration risk.
• MSPs can lean on real time endpoint management and auto remediation (automatically fixing issues on devices) that mirror 1E 78. Simple pricing, quick rollout, and proactive support can win mid market buyers worried about cost controls hurting service 2.
• U.S. deal cycles have slowed, with smaller pipelines and fewer decisions 2. Competitors should chase 1E heavy verticals such as Consumer Packaged Goods, Manufacturing, and Professional Services with proof of concept offers (small scale trials to validate outcomes) to speed switching 5.