Carlyle Acquires Majority Stake in 1E

The Carlyle Group (CG) has bought a majority stake in Unified eXperience Management (UXM) innovator 1E. The parties did not divulge the details of the transaction.

1E’s Founder Sumir Karayi will continue to lead the business and will remain a minority stakeholder. 1E employees will continue to own a part of the business and share in its future growth. Carlyle will maintain 1E’s existing senior management team and Cormac Whelan will be appointed as 1E’s chairman.

Carlyle is an international investment firm with $260 billion assets under management. It plans to support 1E’s international expansion and invest in its innovative product suite. Carlyle is investing in 1E through its 1.35-billion-euro fund called Carlyle Europe Technology Partners (CETP) IV. (See Carlyle stock analysis on TipRanks)

1E serves the work-from-anywhere enterprise. More than 500 global customers have adopted its solution, and it helps them manage 11 million endpoints.

“The pandemic has accelerated a massive market opportunity to help global businesses transform the employee experience,” said 1E CEO Karayi.

“With strong industry tailwinds, we believe 1E has significant growth opportunities and we look forward to supporting another founder-backed business to scale through investments in product innovation, commercial operations, and international expansion,” commented Fernando Chueca, MD in CETP advisory team.

After hosting a call with management, Bank of America analyst Michael Carrier reiterated a Buy rating on Carlyle stock and raised the price target to $50 from $48. The analyst’s new price target implies 14.31% upside potential.

Carrier noted, “Overall, we think the outlook for CG is attractive, given the potential for FRE/margin growth as flagships and funds re-enter the market, an improving performance fee backdrop with a record accrued balance, and the continued scaling of IS & Credit.”

Consensus among analysts is a Moderate Buy based on 5 Buys and 5 Holds. The Carlyle average analyst price target of $47.25 implies 8.02% upside potential to current levels.

CG scores a 6 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.

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