EQT has agreed to sell most of its stake in IFS and WorkWave to Hg in a deal that values the companies at $10 billion. TA will also divest a portion of its stake in the companies to Hg. IFS is a provider of cloud-based enterprise software. And, WorkWave is a provider of software and related digital solutions to recurrent service verticals within field service management.
EQT is pleased to announce that the EQT VIII fund has agreed to sell most of its stake in IFS and WorkWave (the “Companies”) to Hg in a transaction valuing the Companies at USD 10 billion. Existing minority shareholder TA will also divest a portion of its stake to Hg. The EQT VIII and EQT IX funds (together, “EQT Private Equity”) remain in voting control as the largest shareholder in IFS and WorkWave alongside Hg, TA and the Companies’ respective management teams following the closing of the transaction.
Founded in 1983, IFS is a globally recognized leader in developing and delivering cloud-based enterprise software. IFS provides a single unified platform delivering best-in-class Field Service Management (FSM), Enterprise Asset Management (EAM), Enterprise Resource Planning (ERP) and Enterprise Service Management (ESM) solutions. IFS is a key enabler for customers digitizing their core operations while contributing to more efficient use of resources and assets across its customers’ value chain. IFS has over 4,500 employees in more than 50 countries, serving thousands of customers worldwide.
Since EQT Private Equity and TA acquired IFS from the EQT VII fund in 2020, the company has continued its transformation journey into a global enterprise software champion. Several strategic initiatives have contributed to this success, including the launch of IFS Cloud, the “Moment of Service” rebranding, the establishment of a fourth product segment in ESM (through IFS Assysts) and completion of three add-on acquisitions. Between FY19A and FY21A, IFS grew Cash EBITDA by 51 percent per annum and Software Revenues by 22 percent per annum, with 70 percent of revenues this year being recurring.
Founded in 1984, WorkWave is a leading provider of software and related digital solutions to recurrent service verticals within field service management (FSM). WorkWave’s solutions empower companies in their target verticals to reach their full potential through scalable, cloud-based software solutions that support every stage of their business life cycle, including marketing, sales, service delivery, customer interaction and financial transactions.
Following the 2021 decision to separate WorkWave from IFS and operate it as a standalone portfolio company, WorkWave has grown revenues three-fold through rapid organic growth combined with three transformational add-on acquisitions. In less than 12 months, WorkWave has grown from being the leading software provider in one vertical to having the clear leadership position across four main vertical segments within recurrent Field Services. The company has also expanded its digital offerings including continued success with its payments solution.
EQT, Hg and TA will support IFS’s and WorkWave’s continued standalone growth journeys, cementing and strengthening their respective leadership positions. Further investments will be made in the companies’ organizations and product capabilities, both organically and through strategic add-on acquisitions.