IFS, a Swedish provider of cloud enterprise software and industrial AI solutions, has achieved a valuation of over €15 billion, driven by strong growth and a strategic pivot to AI. It follows Hg’s increased investment, becoming a co-control shareholder alongside EQT, while TA Associates remains a minority investor. The round also brought in heavyweight institutions including the Abu Dhabi Investment Authority (ADIA) and the Canada Pension Plan Investment Board (CPP Investments).
This reshaping of the cap table not only reinforces IFS’s long-term vision but also reflects investor belief in its AI-first strategy. Arma Partners, White & Case, Evercore, Morgan Stanley, and Skadden advised on the transaction, which is set to close by the end of Q2 2025, pending regulatory approvals.
Scales proven success
With over €1 billion in annual recurring revenue (ARR) and €1.2 billion in total 2024 revenue, IFS continues to outperform. The company posted over 30% year-on-year growth and added 350 new enterprise customers in the past year alone. New adopters include Exelon, Rolls-Royce, and TotalEnergies, each leveraging IFS’s platform to modernise complex industrial operations. The average deal size among large clients also grew by 64% year-on-year, indicating deepening enterprise adoption.
The growing need for industrial AI
IFS’s rapid rise is aligned with a broader shift in the enterprise software market. Traditional systems are no longer sufficient for asset-intensive industries navigating complexity, disruption, and sustainability pressures. Its AI-powered solutions address these evolving challenges head-on, empowering clients in aerospace, construction, manufacturing, utilities, telecoms, and beyond to automate workflows, reduce waste, and scale efficiency.
From tent to tech powerhouse
IFS’s origins trace back to 1983 when five university friends from Linköping University launched the company in Sweden. They pitched a tent outside their first customer’s site to ensure they would be available 24/7 and the needs of the customer would come first. This spirit of commitment and customer-centricity laid the foundation for a global organisation that now spans 80 countries with a 7,000-strong workforce.
Enterprise tech reimagined
IFS is a global leader in Industrial AI and enterprise software, purpose-built for mission-critical industries that power, serve, and protect the world. Its solutions help businesses that manufacture goods, maintain complex infrastructure, and deliver service-focused operations harness the power of AI to drive productivity, operational efficiency, and long-term sustainability.
At the core of its offering is IFS Cloud, a fully composable, AI-driven platform designed to adapt to each customer’s unique needs and growth journey. It brings together capabilities across Enterprise Resource Planning (ERP), Enterprise Asset Management (EAM), Supply Chain Management (SCM), and Field Service Management (FSM). By combining AI, machine learning, real-time data, and analytics, IFS empowers organisations to make sharper decisions and deliver excellence in every critical moment of service.
What’s ahead?
As industrial companies seek digital transformation to meet modern demands, IFS is positioning itself as the go-to provider for scalable, future-proof enterprise software. With fresh capital and strategic partners, it plans to deepen its AI capabilities, expand customer value, and capture new global opportunities. As organisations embrace intelligent automation, the company is poised to shape the next era of enterprise technology.
Mark Moffat, CEO of IFS, said: “IFS’s success and sustained growth is 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.” Moffat continued: “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.”
Johannes Reichel, Partner and Co-Head of Technology in the EQT Private Equity advisory team, added: “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.”
Nic Humphries, Senior Partner and Head of the Saturn funds at Hg, commented: “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, 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.”