The software company TeamViewer takes over the Germany-based data glasses start-up Ubimax for 136.5 million euros in cash and shares.
The MDAX and TecDAX group is thus expanding its industry-specific offering for large corporate customers in the areas of Augmented Reality (AR) and Internet of Things (IoT). Of the purchase price, 85.8 million Euros from liquid assets of TeamViewer will be paid in cash, the rest in shares, as TeamViewer AG further announced. In addition, the Ubimax founders will receive 1,070,931 new TeamViewer shares, which will be issued from the authorized capital in the context of a capital increase against contribution in kind. The new shares are subject to a lock-up period of three years, with release taking place in annual tranches.
The transaction is expected to close in the third quarter of 2020, subject to certain closing conditions. Ubimax is said to offer the AR software platform Frontline, wearables such as data glasses and consulting services to approximately 200 enterprise customers from various industries worldwide. The company employs more than 90 people in Germany, the USA and Mexico.
How the TeamViewer share reacts
Teamviewer shares, which have risen sharply recently, came under pressure on Wednesday following the announcement of a takeover and an initial indication of quarterly results. The shares included in the MDAX slipped into double-digit losses at times, but were able to recover quickly and recently fell by 7.11 percent to 46.80 euros via XETRA.
However, the shares of the specialist for remote maintenance software thus moved further away from the record high of 54.86 euros reached only last week. In view of the recent high price gains and the valuation, which has meanwhile risen to more than ten billion euros, traders had already warned of setbacks in the past few days.
Teamviewer announced on Wednesday the takeover of the software manufacturer Ubimax for 136.5 million euros. Teamviewer wants to pay almost 86 million euros in cash, the rest with own shares. The purchase price is many times higher than what Ubimax was last able to book as invoiced income (“billings”). Calculated over the past twelve months, this amounted to a mere nine million euros.
Ubimax specializes in portable offers and so-called augmented reality solutions for skilled workers in industry. Teamviewer is hardly represented in this segment so far. According to the company, which has been listed on the stock exchange since 2019, the target market will grow by a third to 40 billion euros by 2023.
It could also be important for the company to expand its product range beyond the current range of products, which primarily specializes in computers and smartphones, in order to maintain its high growth rate and thus justify its valuation. In the second quarter, Teamviewer increased its billings by 45 percent to around 106 million euros.
That is a lot, but not nearly as much as in the first quarter, when the corona-related lockdown and the move of many employees to the home office boosted business. Some experts, such as Berenberg analyst Gustav Froberg, who only confirmed his buy recommendation on Wednesday morning and raised the price target by ten to 61 euros, had also expected a little more.
Despite the setback on Wednesday, the share is one of the biggest winners among German blue chips, with a premium of slightly more than 50 percent since the end of 2019. The company from Göppingen near Stuttgart was floated on the stock exchange in September 2019 by financial investor Permira for 26.25 euros per share.
With an issue volume of EUR 2.2 billion, it was the largest IPO of a German technology company since the bursting of the dotcom bubble at the turn of the millennium. Permira itself was the main beneficiary of the price increase since then. The financial investor had only bought the company in 2014 for around EUR 870 million. Through the IPO and share sales in recent months, Permira raised almost four billion euros.
In addition, Permira continues to hold 39 per cent of the company, which is still valued at € 9.6 billion after the share price decline on Wednesday. The financial investor’s block of shares is therefore currently worth approximately EUR 3.7 billion. And Oliver Steil and CFO Stefan Gaiser also benefited from the stock rally. Due to their success on the capital market, they received compensation of €41 million and €21 million in 2019 respectively – a large part of it directly from Permira./zb/bek/men
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