**Dubai**: IFS, a cloud enterprise software and industrial AI provider, achieves a €15 billion valuation following increased investment from Hg, alongside EQT and TA Associates. The deal includes new minority investors ADIA and CPP Investments, supporting IFS’s accelerating growth and global expansion in AI-driven industrial solutions.
Dubai — IFS, a prominent provider of cloud enterprise software and Industrial AI applications, has reached a valuation exceeding €15 billion following a strategic shift towards AI-driven growth. This milestone comes amid a transaction in which investment firm Hg has increased its stake to become a co-control shareholder alongside EQT, while existing minority shareholder TA Associates (TA) maintains its investment in the company. The deal also brings in new minority investors, including a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and the Canada Pension Plan Investment Board (CPP Investments).
Hg and the new investors are acquiring shares from EQT through its EQT VIII and EQT IX funds, as well as from TA and other minority shareholders. The transaction is expected to complete by the end of the second quarter of 2025, subject to customary regulatory approvals.
Mark Moffat, CEO of IFS, highlighted the company’s sustained growth and commitment to delivering rapid business value, particularly through its advanced AI capabilities. Speaking to TahawulTech, he said, “IFS’s success and sustained growth are centred around a commitment and track record of rapidly delivering business value to our customers. We have a differentiated proposition that continues to drive momentum in the industrial setting, specifically with the agentic and generative capabilities of IFS.ai, which enables us to be the technology of choice for the businesses that service, power and protect our planet.” He added, “The investment and continued commitment from Hg, EQT and TA will help IFS further accelerate our journey to be the undisputed category leader of Industrial Software.”
In recent years, IFS has experienced robust growth, surpassing €1 billion in annual recurring revenue (ARR) last year and generating total revenue exceeding €1.2 billion in 2024. The company has attracted some of the world’s largest industrial corporations, who have increasingly chosen IFS over traditional legacy vendors. Demand for IFS’s industrial AI solutions has surged over the past 12 months across sectors such as Aerospace & Defence, Engineering & Construction, Energy & Utilities, Manufacturing, Telecommunications, and Service industries. IFS emphasises continuing to expand the industrial application of generative and agentic AI to enable customers to automate workflows, enhance efficiency, and improve service delivery to their own clients.
Johannes Reichel, Partner and Co-Head of Technology at EQT Private Equity, remarked on the company’s evolution since 2015: “EQT’s relationship with IFS started in 2015 and it has been remarkable to see the company’s growth since then. Starting as a software vendor focused on Northern Europe, IFS has become a global provider of enterprise solutions while embracing the power of AI for the benefit of its industrial clients. It’s a prime example of EQT’s ability to ‘run with the winners’, where we partner with management teams over the long-term to scale regional players into global champions. We are excited to work alongside Hg to continue supporting IFS through this next phase.”
Over the last year, IFS has added 350 new customers, including major companies such as Exelon, which adopted IFS to streamline asset maintenance across its energy grid; Rolls-Royce, utilising IFS to transform service delivery in its Power Systems division; and Total Energies, which is deploying IFS as a unified platform to manage and service its global asset portfolio. This trend is reflected in a 64% year-on-year increase in the average deal size among IFS’s largest clients.
Nic Humphries, Senior Partner and Head of the Saturn funds at Hg, expressed confidence in IFS’s long-term vision and execution: “With 20 years’ experience investing in software, we recognise exceptional businesses when we see them. Our increased investment in IFS reflects our conviction in their long-term vision and strong execution, which enables their customers’ digital transformation.”
Jonathan Wulkan, Partner at Hg, added, “Since our initial partnership in 2022 alongside EQT, Mark and the team have not only delivered impressive and consistent growth but have emerged as a global leader in Industrial AI – translating the promise of AI into practical solutions that drive efficiency and sustainability for essential industries, with significant potential for continued growth.”
Naveen Wadhera, Managing Director at TA, also commented, “IFS’s exceptional leadership, strong execution, and transformative AI capabilities are redefining what’s possible in enterprise software. We remain confident in the company’s vision and are excited to be part of its continued journey.”
Advisory for the transaction was provided by Arma Partners and White & Case for IFS and selling shareholders, Evercore for EQT, and Morgan Stanley & Co. plc along with Skadden for Hg.
Source: Noah Wire Services
