EQT VII to sell global enterprise software provider IFS to successor funds and TA Associates
The EQT VII fund (EQT VII) has agreed to sell IFS AB (IFS) to the successor funds EQT VIII and EQT IX, and global growth private equity firm, TA Associates, which becomes a minority partner at a transaction value in excess of EUR3 billion.
Founded in 1983, IFS is a provider of Field Service Management (FSM) software and is recognised for its vertically-aligned Enterprise Resource Planning (ERP) and Enterprise Asset Management (EAM) software solutions. IFS is a key enabler for digitalising core operations while contributing to more efficient use of resources and assets across its customers’ value chain. The Company serves more than 10,000 customers globally, reaching more than one million users.
Together with the management team and the board of directors, EQT VII has supported IFS on an accelerated growth journey, resulting in a doubling of revenues to SEK7.3 billion, a quadrupling of EBITDA and a 50 per cent increase of the employee base over the holding period. With EQT VII’s support, IFS has also made multiple add-on acquisitions (including WorkWave and Astea) which, combined with the organic growth and investment in the Company’s product offering, has strengthened IFS’ leading position within FSM.
Robert Maclean, Partner at EQT Partners, says: “When EQT VII acquired IFS in 2015, it was a well-performing business supported by strong macro trends with significant opportunities to further accelerate growth. Today, IFS is trailblazing the enterprise software space and we have been incredibly impressed by IFS’ ability to consistently outperform their fast-growing market.”
Per Franzén, Partner at EQT Partners and Co-Head of Private Equity, adds: “We are impressed by how well IFS has developed over the past few years. Today, IFS is a true leader in its verticals, and IFS’ solutions are globally recognised for helping businesses stay ahead of the curve when it comes to digitalisation. IFS is another great example of EQT future proofing businesses and the management team, led by CEO Darren Roos, has done an excellent job strengthening IFS’ position across its core verticals transforming the organisation into a global enterprise software company.”
Darren Roos, CEO of IFS, says: “The IFS and EQT VII partnership has been excellent. EQT’s expertise within software and digitalisation has played a critical role in supporting IFS on our growth journey. We look forward to continuing our development journey together with EQT and TA Associates.”
Over the years, IFS has made significant investments into its development hubs in Sri Lanka where it is now the country’s second largest technology employer. In 2019, IFS also established the IFS Foundation with the aim of supporting local communities and breaking the poverty cycle in Sri Lanka.
IFS’ sister-company Acumatica will not be sold as part of the transaction and will remain an EQT VII investment.
Goldman Sachs and Jefferies acted as financial advisors to EQT VII, and Arma Partners acted as financial advisor to TA Associates.