IFS Hits €15 Billion Valuation Amid Surging Demand for Industrial AI

IFS, a global leader in cloud enterprise software and Industrial AI, has reached a valuation of over €15 billion, driven by accelerating demand for its AI-powered solutions across industrial sectors.

The new valuation follows a significant increase in investment from Hg, which now joins EQT as a co-control shareholder. TA Associates remains a minority investor, while new stakeholders include a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and the Canada Pension Plan Investment Board (CPP Investments). Shares are being acquired from EQT’s EQT VIII and EQT IX funds, as well as from TA and other minority shareholders.

This investment comes on the heels of IFS’s continued growth, having surpassed €1 billion in annual recurring revenue (ARR) and achieving 30%+ year-on-year growth. In 2024, IFS posted €1.2 billion in total revenue, with major global companies choosing IFS over traditional software vendors.

Demand for IFS.ai, the company’s Industrial AI platform, has soared as companies in key sectors like Aerospace & Defence, Energy, Manufacturing, and Engineering seek digital transformation. IFS is expanding its capabilities in generative and agentic AI, helping customers automate workflows, enhance efficiency, and elevate service experiences.

In the past year alone, IFS added 350 new enterprise customers, including Exelon, Rolls-Royce, and Total Energies, each deploying IFS to modernize operations and improve asset performance. The average deal size among IFS’s top-tier clients grew by 64%, reflecting increased trust in its scalable AI solutions.

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.”

The transaction is subject to customary regulatory approvals and is expected to complete end of Q2 2025. IFS and selling shareholders were advised by Arma Partners and White & Case, EQT was also advised by Evercore, and Hg was advised by Morgan Stanley & Co. plc and Skadden.

Photo: Mark Moffat, CEO of IFS