EQT funds to acquire global enterprise software provider IFS and bring in TA Associates as minority partner
- EQT funds to acquire IFS, the leading global enterprise software provider that enables business to digitalize their core operations, for a transaction value in excess of EUR 3 billion
- TA Associates to join as a minority partner and will hold a significant minority stake in IFS
- EQT funds and TA Associates to support IFS and the management team with continued investments in the organization and product capabilities, both organically and through add-on acquisitions
EQT today announced that the EQT VIII and EQT IX funds (“EQT”), together with global growth private equity firm TA Associates, have agreed to acquire IFS AB (“IFS” or “the Company”) from the EQT VII fund. TA Associates will hold a significant minority stake in IFS.
Founded in 1983, IFS is the leading provider of Field Service Management (FSM) software and is recognized for its vertically-aligned Enterprise Resource Planning (ERP) and Enterprise Asset Management (EAM) software solutions. IFS is a key enabler for digitalizing 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.
EQT and TA Associates will support IFS’ continued growth and development journey and manifest its global market leadership position by further investing in the Company’s organization and strengthening its product capabilities, both organically and through add-on acquisitions in targeted industry verticals.
Johannes Reichel, Partner at EQT Partners, said: “We are impressed with IFS’ strong management team around CEO Darren Roos and the Company’s ability to continuously outgrow the market. We see significant long-term growth opportunities for IFS, and under EQT’s and TA Associates’ ownership, we believe that IFS is well-positioned to capitalize on thematic end market trends such as servitization within IFS’ core verticals increasing the need for FSM solutions. We will now enter the next chapter of IFS’ growth journey together with its management team, board of directors and TA Associates.”
Darren Roos, CEO of IFS, said: “We are excited to continue our journey with EQT, now with the additional support and commitment from TA Associates. Both have deep enterprise software experience, which make them ideal partners to further accelerate our growth. IFS is the global leader in FSM, a fast-growing market where we continue to win market share. This is where we believe that we can help our customers create the most value, by enabling them to provide their customers with superior service and experience. IFS’ proposition in the market is compelling and differentiated, which, when combined with the market opportunity, provides all the right ingredients for continued growth.”
Naveen Wadhera, Managing Director at TA Associates and Co-Head of TA Associates’ EMEA Technology Group, said: “We are thrilled to be part of IFS’ journey going forward. We have followed IFS for years and are truly impressed by the work that Darren and his team have done establishing the Company as the global leader within FSM. We believe that there are numerous growth opportunities for the Company, and we look forward to partnering with EQT to support IFS in its next transformation phase.”
Per Franzén, Partner at EQT Partners and Co-Head of EQT Private Equity, concluded: “EQT looks forward to continue backing IFS and management on its growth journey. With TA Associates, EQT has gained a trusted partner for jointly supporting and developing IFS further during the years ahead.”
The investment in IFS is in line with EQT’s thematic approach guided by the United Nations Sustainable Development Goals, specifically SDG 9, “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation” and SDG 12, “Responsible Consumption and Production”.
The transaction is subject to customary regulatory approvals and is expected to close at the end of August 2020.
JP Morgan Securities plc acted as financial advisor to EQT VIII and EQT IX, and Arma Partners acted as financial advisor to TA Associates.
With the acquisition of IFS by EQT VIII and EQT IX, EQT VIII is expected to be 80-85 percent invested and the commitment period is terminated (remaining commitments to be used primarily for add-on acquisitions and strategic capital injections as well as for ongoing expenses). Simultaneously, the successor fund EQT IX is activated and consequently starts charging management fees. The fundraising of EQT IX (target fund size of EUR 14.75 billion and hard cap of EUR 15 billion) runs according to plan and is anticipated to be materially concluded during the third quarter. With the acquisition of IFS, EQT IX will be 5-10 percent invested based on its target fund size.
Contacts for EQT
Johannes Reichel, Partner at EQT Partners and Investment Advisor to EQT VIII and EQT IX, +49 1517 303 8314
EQT Press Office, firstname.lastname@example.org, +46 8 506 55 334
Contacts for TA Associates
Marcia O’Carroll, Director of Marketing at TA Associates, +1 617-852-1345, email@example.com
Philip Nunes, BackBay Communications, +1 617-391-0792, firstname.lastname@example.org
Stephen Fishleigh, BackBay Communications, +44 203 475 7552, email@example.com
EQT is a differentiated global investment organization with more than EUR 62 billion in raised capital and around EUR 40 billion in assets under management across 19 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and North America with total sales of more than EUR 27 billion and approximately 159,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations. The industry expertise of IFS’ people and solutions, has made IFS a recognized leader and the most recommended supplier in IFS’ core verticals. The IFS team of 4,000 employees and a growing ecosystem of partners support more than 10,000 customers around the world challenge the status quo and realize their competitive advantage.
More info: www.ifs.com
About TA Associates
TA Associates is a leading global growth private equity firm. Focused on targeted sectors within five industries – technology, healthcare, financial services, consumer and business services – TA invests in profitable, growing companies with opportunities for sustained growth, and has invested in more than 500 companies around the world. Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in high quality growth companies. TA has raised $33.5 billion in capital since its founding in 1968 and is committing to new investments at the pace of over $2 billion per year. The firm’s more than 85 investment professionals are based in Boston, Menlo Park, London, Mumbai and Hong Kong.
More info: www.ta.com