IFS, the Swedish-based provider of cloud enterprise software and industrial AI solutions, has surpassed a €15 billion valuation. This milestone comes amid rapid growth and a clear strategic focus on AI. The new valuation follows an increased investment from Hg, which now joins EQT as a co-controlling shareholder. TA Associates maintains a minority stake. The round also brought in high-profile institutional investors including the Abu Dhabi Investment Authority (ADIA) and Canada Pension Plan Investment Board (CPP Investments).
This updated cap table reflects strong investor confidence in IFS’s long-term strategy, particularly its commitment to becoming an AI-first company. Advising the deal were Arma Partners, White & Case, Evercore, Morgan Stanley, and Skadden. The transaction is expected to close by the end of Q2 2025, pending regulatory approval.
Strong Performance and Enterprise Demand
IFS continues to outperform industry benchmarks, generating more than €1 billion in annual recurring revenue (ARR) and total revenues of €1.2 billion in 2024. The company achieved over 30% year-over-year growth, acquiring 350 new enterprise clients in the past year. Major players like Exelon, Rolls-Royce, and TotalEnergies have adopted IFS to modernize their complex industrial workflows. IFS also reported a 64% increase in average deal size among large customers, highlighting growing enterprise commitment.
IFS Meeting the Industrial AI Demand
IFS’s momentum reflects a broader transformation in enterprise software. Legacy systems are failing to meet the evolving needs of asset-heavy industries facing disruption, complexity, and sustainability demands. IFS’s AI-powered solutions enable customers in aerospace, energy, manufacturing, utilities, and telecoms to streamline operations, cut waste, and drive automation.
From Humble Roots to Global Tech Force
Founded in 1983 by five university friends from Linköping University, IFS began with a strong customer-first philosophy—literally camping outside a client’s office to stay available 24/7. That early dedication has evolved into a global enterprise with operations in 80 countries and a workforce of over 7,000.
IFS is now a leader in industrial AI and enterprise software, delivering tailored solutions for industries that manufacture goods, manage complex infrastructure, and deliver essential services. Its AI-first platform, IFS Cloud, merges core functions like ERP, EAM, SCM, and FSM into a single, flexible system.
Through the use of AI, machine learning, and real-time analytics, IFS Cloud helps organizations make smarter decisions, deliver consistent service, and scale with ease.
As industrial firms pursue digital transformation, IFS is positioning itself as the platform of choice for intelligent automation. With fresh capital and global strategic partners, the company aims to deepen its AI capabilities, expand its global footprint, and deliver more value to customers.
IFS CEO Mark Moffat stated: “Our continued success is driven by delivering fast and measurable value to customers. With IFS.ai, we’re enhancing our industrial software with agentic and generative AI capabilities, making us the top choice for industries that power, serve, and protect the world.”
Investor Confidence in IFS Long-Term Vision
Johannes Reichel of EQT noted: “Since 2015, IFS has transformed from a regional software vendor to a global industrial AI leader. This partnership is a clear example of how EQT scales promising companies into global champions.”
Nic Humphries of Hg added: “After two decades of software investing, we recognize standout businesses. Our growing commitment to IFS highlights confidence in their execution and long-term vision.”
Jonathan Wulkan, also of Hg, said: “IFS’s impressive growth and AI leadership show how it’s turning the promise of AI into real value for essential industries.”
Naveen Wadhera of TA Associates commented: “IFS’s exceptional leadership and AI innovation are redefining enterprise software. We’re excited to continue supporting its journey.”
