IFS Secures EUR 15 Billion Valuation Amid Increased Stake by Hg and New Investments
Deal News | Apr 09, 2025 | EQT
IFS, a prominent provider of cloud enterprise software and Industrial AI applications, has achieved a valuation surpassing EUR 15 billion as a result of a minority stake sale. The sale saw Hg increase its stake, becoming a co-control shareholder alongside EQT, while existing minority shareholder TA Associates maintained its investment. Additionally, new minority shareholders include subsidiaries of the Abu Dhabi Investment Authority and the Canada Pension Plan Investment Board. EQT divested shares through its EQT VIII and EQT IX funds. This transaction follows IFS's strong performance, having achieved over EUR 1 billion in annual recurring revenue in the last year, with significant growth attributed to its advanced industrial AI solutions. IFS has managed to attract several high-profile clients, expanding its customer base by 350 new clients, including major companies like Exelon, Rolls-Royce, and Total Energies. The continued investment and support from key stakeholders such as Hg, EQT, and TA are aimed at reinforcing IFS's position as a leader in the Industrial Software sector. The transaction awaits regulatory clearance and is expected to conclude by the end of Q2 2025.
Sectors
- Software Development
- Private Equity and Investment
Geography
- Global – IFS, along with its investors EQT, Hg, TA Associates, ADIA, and CPP Investments, operate on a global scale, with business operations and investments spanning Europe, North America, and other regions.
Industry
- Software Development – IFS operates within the software development industry with a focus on cloud enterprise solutions and Industrial AI applications, servicing industries like Aerospace & Defense, Engineering & Construction, Energy & Utilities, Manufacturing, and more.
- Private Equity and Investment – EQT, Hg, TA Associates, along with ADIA and CPP Investments, are engaged in this transaction, representing the private equity and investment sector. This involves the acquisition of shares, stakeholder reorganization, and capital infusion in IFS.
Financials
- EUR 15 billion – Valuation of IFS following the transaction.
- EUR 1 billion – Annual recurring revenue achieved by IFS.
- EUR 1.2 billion – Total revenue for IFS in 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| EQT | Selling Company (Vendor) | Company | EQT is a global investment organization known for its private capital and real assets management. It was initially a controlling shareholder in IFS but reduced its stake in the transaction. |
| Hg | Investor and Co-Control Shareholder | Company | Hg is a private equity firm focused on investing in software and service businesses, increasing its stake in IFS to become a co-control shareholder. |
| IFS | Target company | Company | IFS is a leading industrial software and AI solutions provider, experiencing significant growth driven by advancements in Industrial AI technologies. |
| TA Associates | Minority Shareholder | Company | A global private equity firm, TA Associates remains an invested minority shareholder in IFS. |
| Abu Dhabi Investment Authority (ADIA) | New Minority Shareholder | Company | A sovereign wealth fund from Abu Dhabi, investing in IFS via a wholly-owned subsidiary. |
| Canada Pension Plan Investment Board (CPP Investments) | New Minority Shareholder | Company | A professional investment management organization that manages the funds of the Canada Pension Plan, participating in the IFS investment. |
| Arma Partners | Advisor | Company | Financial advisor to IFS and its selling shareholders in the transaction. |
| White & Case | Legal Advisor | Company | Provided legal advice to IFS and its selling shareholders in the transaction. |
| Evercore | Advisor | Company | Financial advisor to EQT. |
| Morgan Stanley & Co. plc | Advisor | Company | Financial advisor to Hg. |
| Skadden | Legal Advisor | Company | Provided legal advice to Hg in the transaction. |