IFS Achieves Major Milestone with EUR 15 Billion Valuation in Industrial AI Market

IFS Reaches Over EUR 15 Billion Valuation

In a remarkable development, IFS, a prominent player in the realm of cloud enterprise software and Industrial AI, has announced that its valuation has exceeded EUR 15 billion. This achievement is attributed to a significant pivot towards AI-driven growth, showcasing the ever-increasing demand for innovative software solutions within various industrial sectors.

The latest round of funding involved Hg increasing its stake in IFS, thereby becoming a co-control shareholder alongside EQT, while TA Associates retains its position as a minority shareholder. New participants in this transaction include a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and the Canada Pension Plan Investment Board (CPP Investments). The shares are being acquired from EQT, which is divesting through its EQT VIII and IX funds as well as from other minority investors.

Over the past year, IFS has experienced significant growth, boasting an annual recurring revenue (ARR) of over EUR 1 billion. The total revenue for 2024 was reported to surpass EUR 1.2 billion, with many large-scale industrial companies opting for IFS over traditional software vendors. The last twelve months marked a sharp increase in demand for IFS's industrial AI capabilities, particularly as businesses across sectors like Aerospace, Defense, Engineering, and Utilities recognize the transformative value provided by the IFS.ai platform.

The company's continued expansion is highlighted by their recent acquisition of 350 new customers, which includes major industry players such as Exelon, Rolls-Royce, and Total Energies. Each of these companies is leveraging IFS to enhance operational efficiencies and service delivery within their respective fields. Notably, the average deal size for IFS's largest customers has risen by 64% year-on-year, underscoring the growing trust in IFS’s innovative solutions.

Mark Moffat, the CEO of IFS, emphasized that the company's sustained success and growth are rooted in its focus on rapidly delivering business value to customers. He stated, "IFS's commitment to agentic and generative capabilities through IFS.ai enables us to be the technology partner of choice for organizations dedicated to servicing, powering, and protecting our planet." Moffat further expressed gratitude for the support from Hg, EQT, and TA, indicating that these partnerships will bolster IFS's efforts to emerge as a leader in industrial software solutions.

Johannes Reichel, Partner and Co-Head of Technology at EQT, reflected on the long-standing partnership with IFS, which began in 2015. Since then, IFS has evolved from a regional software vendor in Northern Europe to a global innovator in enterprise solutions, particularly in the realm of AI.

Meanwhile, Nic Humphries, Senior Partner at Hg, highlighted their extensive experience in investing in software companies, stating, "Our increased investment in IFS demonstrates our belief in their long-term vision and execution strength. They are empowering customers’ digital transformations in meaningful ways."

This transaction, aimed at enhancing IFS's growth trajectory, is pending customary regulatory approvals and is expected to wrap up by the end of the second quarter of 2025. The guidance for IFS and its selling shareholders includes insights from prominent advisory firms such as Arma Partners, White & Case, Evercore, and Skadden.

As IFS continues to shape the future of industrial AI, it stands at the forefront of enabling transformation across sectors, heralding a new era in enterprise software that integrates AI capabilities for enhanced productivity and service excellence.