IFS Reaches EUR 15 Billion Valuation Following Major Stake Sale by Hg and EU Investment Partners

IFS Achieves Over EUR 15 Billion Valuation

In a significant development for the enterprise software industry, IFS has announced its valuation has surpassed EUR 15 billion. This impressive figure follows a strategic minority stake sale that saw Hg, alongside fresh investments from the Abu Dhabi Investment Authority (ADIA) and Canada Pension Plan Investment Board (CPP Investments), increasing its ownership in IFS. Meanwhile, EQT continues to be a co-controlling shareholder, with TA Associates maintaining a minority position in the company.

This ascension in valuation comes as IFS experiences unparalleled growth and momentum, especially in industrial AI. The company recently reported over EUR 1 billion in annual recurring revenue (ARR) for the previous year, a remarkable achievement that reflects its expanding footprint among top-tier industrial organizations around the world. Recognized for its innovative offerings, IFS has established a strong presence in sectors such as Aerospace & Defence, Engineering & Construction, Energy & Utilities, and Telecommunications.

Mark Moffat, CEO of IFS, emphasized the company’s commitment to delivering significant value through its technology. He stated, "Our growth trajectory is underpinned by our differentiated approach and ongoing commitment to harnessing AI capabilities that help our customers enhance efficiency and optimize their operations. We are dedicated to being at the forefront of industrial software solutions."

The growth momentum is illustrated by the acquisition of 350 new customers within just one year. Notable new clients include Exelon, which is utilizing IFS to modernize asset maintenance across its energy grid, Rolls-Royce, which aims to revolutionize service delivery in its Power Systems division, and Total Energies, which is adopting IFS as a unified platform for managing its assets globally. Such partnerships highlight IFS’s value proposition in harnessing AI to streamline critical industry operations.

This minority stake transaction involves EQT’s funds, EQT VIII and EQT IX, facilitating the sale of shares held by EQT, as well as those from TA Associates and other minority investors. The growing demand for IFS's capabilities in AI has been a key factor propelling the valuation increase, allowing the company to thrive in an industry facing rapid technological advancement.

Johannes Reichel, a partner at EQT, expressed pride in IFS’s evolution from a regionally focused software vendor to a global player equipped with advanced AI technologies. He noted, "Our long-term partnership with IFS underscores EQT's strategy of supporting talented management teams in scaling regional companies into global leaders. We are excited to continue this journey together with Hg."

Nic Humphries, Senior Partner at Hg, reinforced the firm's confidence in IFS's future, crediting the company's strong leadership and clarity of vision as driving forces behind its impressive trajectory. He remarked, "Our investment reflects our belief in IFS's potential to not only lead but to redefine standards in the industrial software landscape."

The ramifications of this investment extend beyond financials; they represent a clear signal of trust in IFS's innovative capabilities, particularly in adopting generative and agentic AI technologies. The new funding is poised to further enhance IFS’s offerings, enabling it to provide even more sophisticated solutions to meet growing market demands.

This acquisition is contingent upon standard regulatory approvals and is anticipated to finalize by the end of the second quarter of 2025. The involved parties are receiving advice from Arma Partners, White & Case, Evercore, Morgan Stanley, and Skadden, showcasing the high-profile nature of this deal.

Moreover, as IFS embarks on this next chapter of growth, it stands uniquely positioned to offer transformative AI solutions that drive efficiency and sustainability across essential industrial sectors, cementing its status as an industry leader. Keeping pace with rapid technological changes, IFS continues on its path to establishing itself as the cornerstone of modern industrial operations and enterprise management.