IFS Soars to New Heights: A EUR 15 Billion Valuation Amidst Industrial AI Surge
April 10, 2025, 4:23 pm
Location: United Arab Emirates, Ajman Emirate, Ajman
Employees: 10001+
Founded date: 1924
Location: United States, New York
Employees: 1001-5000
Founded date: 1948
In the fast-paced world of technology, few stories shine as brightly as that of IFS. This enterprise software provider has recently reached a staggering valuation of EUR 15 billion. The driving force? A strategic pivot towards industrial AI that has captured the attention of investors and clients alike.
On April 9, 2025, IFS announced its impressive valuation following a significant investment round. Hg, a prominent private equity firm, has increased its stake, becoming a co-control shareholder alongside EQT. TA Associates, a long-time minority shareholder, remains invested. New players have entered the scene, including a subsidiary of the Abu Dhabi Investment Authority (ADIA) and the Canada Pension Plan Investment Board (CPP Investments). This influx of capital is a testament to IFS's robust growth trajectory.
The numbers tell a compelling story. IFS has surpassed EUR 1 billion in annual recurring revenue (ARR), boasting a year-on-year growth rate exceeding 30%. In 2024 alone, the company generated over EUR 1.2 billion in total revenue. This growth is not just a flash in the pan; it reflects a strategic focus on delivering value to some of the world's largest industrial companies. These firms are increasingly choosing IFS over traditional legacy vendors, a clear sign of the changing tides in enterprise software.
The demand for IFS's industrial AI capabilities has surged in the past year. Industries such as Aerospace & Defense, Engineering & Construction, Energy & Utilities, Manufacturing, Telecommunications, and Services are recognizing the transformative potential of IFS.ai. This platform enables organizations to automate workflows, enhance efficiency, and deliver exceptional service to their customers. The future looks bright as IFS continues to expand its capabilities, leveraging generative and agentic AI to stay ahead of the curve.
In the past year, IFS has welcomed 350 new customers into its fold. Notable names include Exelon, which adopted IFS to streamline asset maintenance across its energy grid, and Rolls-Royce, utilizing IFS to revolutionize service delivery in its Power Systems division. Total Energies has also turned to IFS, deploying it as the central platform for managing its global asset portfolio. The average deal size for IFS's largest customers has increased by a remarkable 64% year-on-year, further underscoring the company's growing influence in the market.
Mark Moffat, CEO of IFS, emphasizes the company's commitment to delivering business value. IFS's unique proposition is driving momentum in the industrial sector, particularly with its advanced AI capabilities. The support from Hg, EQT, and TA is set to accelerate IFS's journey toward becoming the undisputed leader in industrial software.
EQT's relationship with IFS dates back to 2015. Over the years, the company has transformed from a regional player into a global provider of enterprise solutions. This evolution is a testament to EQT's strategy of partnering with management teams to scale businesses into champions. The collaboration with Hg marks a new chapter in IFS's growth story, with both firms committed to supporting the company's ambitious vision.
Hg's investment reflects a deep conviction in IFS's long-term potential. With two decades of experience in software investments, Hg recognizes exceptional businesses when it sees them. The firm believes that IFS's strong execution and innovative approach will drive digital transformation for its customers.
The transaction is still subject to regulatory approvals and is expected to close by the end of Q2 2025. IFS and its selling shareholders have enlisted the expertise of Arma Partners and White & Case for advisory services. EQT and Hg have also engaged top-tier advisors to navigate this complex landscape.
As IFS continues to ride the wave of industrial AI, the implications for the broader market are significant. The company's success is not just a victory for its shareholders; it signals a shift in how industries approach technology. Businesses are increasingly recognizing the need for agile, AI-driven solutions to stay competitive in a rapidly evolving landscape.
In conclusion, IFS's remarkable valuation of EUR 15 billion is a reflection of its strategic pivot towards industrial AI and its commitment to delivering value to customers. With strong backing from investors and a growing customer base, IFS is poised for continued success. The journey ahead is filled with opportunities, and IFS is ready to seize them. The future of industrial software is here, and IFS is leading the charge.
On April 9, 2025, IFS announced its impressive valuation following a significant investment round. Hg, a prominent private equity firm, has increased its stake, becoming a co-control shareholder alongside EQT. TA Associates, a long-time minority shareholder, remains invested. New players have entered the scene, including a subsidiary of the Abu Dhabi Investment Authority (ADIA) and the Canada Pension Plan Investment Board (CPP Investments). This influx of capital is a testament to IFS's robust growth trajectory.
The numbers tell a compelling story. IFS has surpassed EUR 1 billion in annual recurring revenue (ARR), boasting a year-on-year growth rate exceeding 30%. In 2024 alone, the company generated over EUR 1.2 billion in total revenue. This growth is not just a flash in the pan; it reflects a strategic focus on delivering value to some of the world's largest industrial companies. These firms are increasingly choosing IFS over traditional legacy vendors, a clear sign of the changing tides in enterprise software.
The demand for IFS's industrial AI capabilities has surged in the past year. Industries such as Aerospace & Defense, Engineering & Construction, Energy & Utilities, Manufacturing, Telecommunications, and Services are recognizing the transformative potential of IFS.ai. This platform enables organizations to automate workflows, enhance efficiency, and deliver exceptional service to their customers. The future looks bright as IFS continues to expand its capabilities, leveraging generative and agentic AI to stay ahead of the curve.
In the past year, IFS has welcomed 350 new customers into its fold. Notable names include Exelon, which adopted IFS to streamline asset maintenance across its energy grid, and Rolls-Royce, utilizing IFS to revolutionize service delivery in its Power Systems division. Total Energies has also turned to IFS, deploying it as the central platform for managing its global asset portfolio. The average deal size for IFS's largest customers has increased by a remarkable 64% year-on-year, further underscoring the company's growing influence in the market.
Mark Moffat, CEO of IFS, emphasizes the company's commitment to delivering business value. IFS's unique proposition is driving momentum in the industrial sector, particularly with its advanced AI capabilities. The support from Hg, EQT, and TA is set to accelerate IFS's journey toward becoming the undisputed leader in industrial software.
EQT's relationship with IFS dates back to 2015. Over the years, the company has transformed from a regional player into a global provider of enterprise solutions. This evolution is a testament to EQT's strategy of partnering with management teams to scale businesses into champions. The collaboration with Hg marks a new chapter in IFS's growth story, with both firms committed to supporting the company's ambitious vision.
Hg's investment reflects a deep conviction in IFS's long-term potential. With two decades of experience in software investments, Hg recognizes exceptional businesses when it sees them. The firm believes that IFS's strong execution and innovative approach will drive digital transformation for its customers.
The transaction is still subject to regulatory approvals and is expected to close by the end of Q2 2025. IFS and its selling shareholders have enlisted the expertise of Arma Partners and White & Case for advisory services. EQT and Hg have also engaged top-tier advisors to navigate this complex landscape.
As IFS continues to ride the wave of industrial AI, the implications for the broader market are significant. The company's success is not just a victory for its shareholders; it signals a shift in how industries approach technology. Businesses are increasingly recognizing the need for agile, AI-driven solutions to stay competitive in a rapidly evolving landscape.
In conclusion, IFS's remarkable valuation of EUR 15 billion is a reflection of its strategic pivot towards industrial AI and its commitment to delivering value to customers. With strong backing from investors and a growing customer base, IFS is poised for continued success. The journey ahead is filled with opportunities, and IFS is ready to seize them. The future of industrial software is here, and IFS is leading the charge.