- Hg will become a significant minority investor, in a transaction valuing IFS and WorkWave at $10bln USD
- EQT to remain the majority shareholder, with TA as a significant minority shareholder
- EQT, Hg, and TA will form a trio of world-class investors with decades of software experience, backing IFS and WorkWave for their next wave of growth
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IFS, the global cloud software company, today announced that Hg, a leading software and services investor, has agreed to become a significant minority shareholder in IFS and WorkWave.
Long-term investor EQT remains the majority shareholder, with Hg and TA Associates as significant minority shareholders. The transaction values IFS and WorkWave at $10bln USD and sets both companies up to further grow their position as leading players in growing sectors.
IFS is the software vendor for organizations who want to differentiate on service. The IFS Cloud platform is fully composable, with a broad industry depth, and packed with innovation so that companies can be their best when it matters to their customers—at the Moment of Service. With thousands of the world’s most respected brands as customers, IFS is a recognized provider across multiple sectors including Service Management (both Field Service Management and Enterprise Service Management), Enterprise Asset Management (EAM) and Enterprise Resource Planning (ERP).
WorkWave’s suite of products empower service-oriented companies in its target verticals to reach their full potential through scalable, cloud-based software solutions that support every stage of a business life cycle, including marketing, sales, service delivery, customer interaction and financial transactions.
Following consecutive years of consistent growth at both IFS and WorkWave, the combined investment from EQT, TA and Hg, an investor with over 20 years’ focus on software business across Europe and North America, will help the companies further accelerate growth organically and inorganically through acquisition.
Darren Roos, CEO of IFS and Chairman of WorkWave, said: “We’re proud to have built two amazing software brands—and we continue to go from strength-to-strength. We are structured to scale, we have outstanding technology, and our people and partners remain obsessed with our customers’ success. These have been the foundations of our success at both IFS and WorkWave, and now with the additional backing and software expertise of Hg alongside EQT and TA, we have the ability to accelerate even faster.”
Nic Humphries, Senior Partner and Head of the Saturn funds at Hg, said: “We have spent well over 20 years with a strong focus on enterprise software. As a result we have followed IFS’ success for several years and recognize it as a very high-quality cloud business. Its consistent performance and growth are a result of a compelling and differentiated proposition, built by a strong management team led by Darren. Both IFS and WorkWave offer very strong cloud products in verticals which are growing rapidly and we therefore see clear runway for sustained growth for the business.”
Johannes Reichel, Partner at EQT added: “IFS is well positioned to take advantage of several global thematic trends, including customers wanting to digitalize their core operations enabling them to deliver even better service to their customers as well as more sustainable usage of their resources and assets. We believe there are long-term growth opportunities that IFS can capitalize on, especially with the combined support of EQT, Hg and TA helping fuel growth.”
Naveen Wadhera, Managing Director at TA, said: “As industries and enterprises push to digitize and streamline their core operations, it presents even greater opportunity for innovative software leaders. We have been impressed by IFS’ and WorkWave’s strategic response to this market opportunity and believe the companies are well positioned for sustainable, accelerated growth, with a focus on strengthening product capabilities and expanding in targeted industry verticals. We are thrilled to continue supporting the development journey of IFS and WorkWave, together with Darren and the management team, EQT and now Hg.”
The transaction is subject to customary conditions and approvals and is expected to close during Q3 2022.
Arma Partners acted as exclusive financial adviser to the sellers on this transaction alongside White & Case (legal), Kirkland & Ellis (legal) and PwC (financial and tax).
EQT is a purpose-driven global investment organization with EUR 73.4 billion in assets under management across 28 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and the Americas with total sales of approximately EUR 29 billion and more than 175,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership. For more information, visit www.eqtgroup.com
About TA Associates
TA is a leading global growth private equity firm. Focused on targeted sectors within five industries – technology, healthcare, financial services, consumer and business services – the firm invests in profitable, growing companies with opportunities for sustained growth, and has invested in more than 550 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 $47.5B in capital since its founding in 1968. For more information, visit www.ta.com.
Hg is a platform for software and services champions, focused on backing businesses that change how we all do business. Deep technology expertise, complemented by vertical application specialisation and dedicated operational support, provides a compelling proposition to management teams looking to scale their businesses. Hg has funds under management of over $40B, with an investment team of over 160 professionals, plus a portfolio team of almost 50 operators, providing practical support to help our businesses to realise their growth ambitions. Based in London, Munich and New York, Hg has a portfolio of over 40 software and technology businesses, worth over $100B aggregate enterprise value, with over 55,000 employees globally, growing at over 20% per year. For more information, visit http://www.hgcapital.com.
IFS develops and delivers cloud enterprise software for companies around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations. Within our single platform, our industry specific products are innately connected to a single data model and use embedded digital innovation so that our customers can be their best when it really matters to their customers—at the Moment of Service™. The industry expertise of our people and of our growing ecosystem, together with a commitment to deliver value at every single step, has made IFS a recognized leader and the most recommended supplier in our sector. Our team of 4,500 employees every day live our values of agility, trustworthiness and collaboration in how we support our thousands of customers. For more information, visit www.ifs.com.
For nearly 40 years, WorkWave has been building best practices into its leading field service and last mile software solutions to allow best-in-class companies to grow their business, service their customers and maximize their money. Its solutions empower service-oriented companies to reach their full potential through scalable, cloud-based software solutions that support every stage of a business life cycle, including marketing, sales, service delivery, customer interaction and financial transactions. WorkWave is a trusted partner for thousands of customers across a wide variety of industries, including pest control, lawn care, cleaning, security, HVAC, plumbing and electrical, and last mile delivery. WorkWave’s award-winning culture and solutions have been recognized in the SaaS Awards, the Cloud Awards, the American Business Awards, the NJBIZ Best Places to Work Awards, and the Stevie Awards for Great Employers. For more information, visit www.workwave.com.