IFS Exceeds EUR 15 Billion Valuation Amid Industrial AI Surge and New Investments

IFS Achieves Milestone Valuation

IFS, a prominent player in cloud enterprise software and Industrial AI applications, has recently announced a valuation surpassing EUR 15 billion. This significant increase is primarily attributed to the growing demand for AI-driven solutions across various sectors, including Aerospace, Construction, and Energy.

The announcement comes on the heels of Hg increasing its investment in IFS, thus becoming a co-control shareholder alongside EQT, with TA Associates continuing as a minority shareholder. Additionally, new investments have been brought in from organizations like the Abu Dhabi Investment Authority (ADIA) and the Canada Pension Plan Investment Board (CPP Investments). These developments indicate strong confidence in IFS's potential, as they acquire shares from existing investors, including EQT.

In the past year, IFS has more than doubled its annual recurring revenue (ARR), reaching over EUR 1 billion. Their total revenue for the fiscal year 2024 exceeded EUR 1.2 billion. Such impressive growth is reflective of IFS's successful pivot towards AI, offering transformative technology to some of the largest industrial firms in the world, allowing them to enhance efficiency and streamline operations.

Mark Moffat, the CEO of IFS, emphasized the company’s focus on delivering rapid business value to customers. He noted that the distinctiveness of IFS’s AI technology, particularly its agentic and generative capabilities, is becoming pivotal for businesses that operate in sectors vital to our planet's infrastructure.

Over the last year, IFS gained 350 new customers, including global industry leaders such as Exelon, Rolls-Royce, and Total Energies, demonstrating the effectiveness of its solutions in managing and servicing extensive asset portfolios. Notably, the average deal size among IFS’s top customers has surged by 64% year-over-year, signaling a robust shift towards larger enterprises opting for IFS solutions.

As the demand for Industrial AI continues to grow, IFS remains dedicated to advancing its technological capabilities, ensuring that clients can leverage AI to automate workflows and enhance customer service. This ongoing innovation positions IFS not just as a software provider, but as a critical enabler of digital transformation in the industrial sector.

EQT’s relationship with IFS has matured since it began in 2015, and the results have been remarkable. From a regional software vendor, IFS has now established itself as a global leader in enterprise solutions by effectively harnessing the power of AI. Johannes Reichel from EQT remarked on the company’s trajectory, citing it as a model of successful long-term partnerships that aim at scaling regional leaders into global champions.

Similarly, Hg has a substantial track record in software investments and recognizes IFS as a company with exceptional growth potential and a robust long-term vision. The continuous support from Hg, EQT, and TA Associates stands as a pillar to IFS’s ambition to become the undisputed leader in the Industrial Software landscape.

Looking ahead, IFS is set to not only maintain momentum but also accelerate its growth trajectory further. The completion of this transaction is still pending regulatory approvals, with expectations of closure by the end of the second quarter in 2025. With a strong foundation and strategic investments, IFS is poised for an even brighter future.

In conclusion, as IFS navigates through demanding markets and intelligent adaptations, the investments and valuation growth signify a resounding endorsement of its innovative strategies. With AI reshaping industries, IFS stands at the forefront of a revolution that prioritizes efficiency and sustainability in industrial operations.