IFS Reaches a Valuation of EUR 15 Billion Amidst Growth
IFS Achieves EUR 15 Billion Valuation Amid New Investments
IFS, renowned for its innovative cloud enterprise software and industrial AI applications, has recently reported a valuation exceeding EUR 15 billion. This milestone follows a strategic increase in Hg's stake, allowing it to take the role of a co-control shareholder alongside EQT, while TA Associates continues to hold its minority stake.
New Investors Join the IFS Journey
This latest investment round has attracted new stakeholders, notably a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and the Canada Pension Plan Investment Board (CPP Investments). Their inclusion marks a significant endorsement of IFS's vision and ongoing success in the market.
Remarkable Year-Over-Year Growth
Over the last year, IFS has made impressive strides, surpassing EUR 1 billion in Annual Recurring Revenue (ARR) and achieving total revenues of over EUR 1.2 billion. The software company has become the preferred choice for many of the world's largest industrial firms, frequently outpacing established legacy software providers.
Industrial AI Capabilities Gaining Traction
The increasing demand for IFS's industrial AI solutions reflects a broader trend where companies in key sectors such as Aerospace & Defense, Energy & Utilities, and Manufacturing are turning to IFS to capitalize on AI advancements. This strategy is enabling organizations to automate processes and enhance operational efficiency significantly.
Rapid Client Acquisition and Expansion
In the past year, IFS has expanded its customer base by adding 350 new clients, including industry giants like Exelon, Rolls-Royce, and Total Energies. These organizations utilize IFS software to optimize asset management and enhance service delivery, which has contributed to a remarkable 64% increase in the average deal size with major clients.
Leadership’s Vision for the Future
Mark Moffat, CEO of IFS, emphasized, "Our success and continuous growth stem from our unwavering commitment to delivering value swiftly. IFS.ai's capabilities set us apart, and the continued support from Hg, EQT, and TA enhances our capacity to lead the industrial software landscape. We strive to be the go-to technology provider for those powering and protecting our planet."
Further insights were shared by Johannes Reichel, Partner at EQT, who praised IFS's evolution from a regional player to a global market leader leveraging AI for its clients' benefit. This relationship, which began in 2015, underscores EQT's strategy of partnering with high-potential firms to drive growth.
Hg's Long-Term Commitment to IFS
Hg's Nic Humphries noted, "Our extensive experience in software investment allows us to identify promising companies like IFS. This increased investment signifies our belief in their strong leadership and clear agenda that drives customers' digital transformation initiatives." Jonathan Wulkan from Hg echoed this sentiment, highlighting IFS's remarkable journey towards becoming a global leader in Industrial AI.
TA Associates Affirms Confidence in IFS
Naveen Wadhera, Managing Director at TA, praised IFS for its transformative AI features that redefine enterprise software capabilities, aligning stylishly with their investment strategy and business goals.
This transaction awaits the usual regulatory approvals and is anticipated to be finalized by the end of the second quarter. IFS, alongside its selling shareholders, has received comprehensive advisory support from Arma Partners and White & Case, with additional counsel from Evercore for EQT and from Morgan Stanley & Co. plc and Skadden for Hg.
Frequently Asked Questions
1. What is the valuation achieved by IFS?
IFS has been valued at over EUR 15 billion following new investment deals.
2. Who are the new investors in IFS?
The new investors include a subsidiary of the Abu Dhabi Investment Authority (ADIA) and the Canada Pension Plan Investment Board (CPP Investments).
3. How much revenue did IFS report?
IFS reported total revenues exceeding EUR 1.2 billion, highlighting its strong market performance.
4. What sectors does IFS cater to?
IFS serves various sectors, including Aerospace & Defense, Manufacturing, Energy & Utilities, and more, through its industrial AI capabilities.
5. What is the expected timeline for the transaction's completion?
The transaction is expected to finalize by the end of the second quarter upon receiving the necessary regulatory approvals.
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