EQT Partners, a leading investment firm with $45B (€40B) of assets under management, has announced the signing of a definitive agreement to acquire cloud-native enterprise software provider Acumatica through an investment vehicle owned by the same holding company that holds IFS AB (Industrial and Financial Systems). To further reinforce this coalition, following the closing of the transaction Jonas Persson will serve as chairman for both companies. IFS, the global enterprise applications company, and Acumatica, the world’s fastest-growing Cloud ERP provider, will serve growth industries such as manufacturing, distribution, construction, service, energy and A&D, while competing directly with SAP, Oracle, Microsoft, Infor, and Sage among others.
“I closely evaluated IFS and Acumatica for The IDC MarketScape: Worldwide SaaS and Cloud-Enabled Operational ERP Applications 2019 Vendor Assessment,” said Mickey North Rizza, Program Vice President Enterprise Applications, IDC. “Each company was identified as a Major Player in the study, but for different reasons, and together they will truly complement one another. IFS can bolster Acumatica’s ability to globalize and expand in key industries, while Acumatica can support IFS with increased functionality in business intelligence, analytics, and extensive experience of providing a true born-in-the-cloud ERP software-as-a-service offering.”
“This collaboration is great news for both organizations, our customers, partners, and employees,” said IFS CEO Darren Roos, who will assume a position on Acumatica’s board of directors. “EQT has brought together two businesses that will enjoy the key benefits of a partnership in the growing cloud enterprise applications market. IFS and Acumatica can benefit from one another’s resources, capabilities, and strategies, but still enjoy full autonomy and rapid growth trajectories while avoiding disruptions to business operations or brand equity. Acumatica’s cloud-native architecture and operations are absolutely cutting edge, as is its commitment to partners and customers. I ultimately see this as two allies to cover the market from end to end, with combined strength to take market share.”
“IFS is an admirable company in the ERP market who shares our belief in customer satisfaction,” said Jon Roskill, CEO, Acumatica. “We could not have asked for a better match of technologies, strategies, and cultures. IFS and Acumatica both stand for customer satisfaction and choice, providing public, private, and hybrid cloud options as well as modern licensing and rich independent software vendor (ISV) ecosystems. Acumatica’s customer-friendly licensing and industry-leading partner programs will not change, and our award-winning support will only get better. Combined with the proficiencies of IFS, Acumatica is positioned to expand into new markets and offer true global support for our rapidly expanding international customers.”
The closing of the transaction is subject to the satisfaction of customary closing conditions, including the receipt of regulatory approvals. The transaction is expected to close in the third quarter. Terms of the transaction were not disclosed.
The new global entity is ultimately designed to meet a growing range of customer requirements. Both IFS and Acumatica understand that businesses are becoming increasingly global, regardless of size or industry. To scale and compete, customers need a network of resources that will support business operations wherever they, their business partners, and customers may be. To address these needs the two companies will tap into one another’s ISV, reseller and systems integrator communities, cross-pollinate technical resources and roadmaps, and implement best practices across services and support to enable efficiencies of scale and rapid growth that are mutually beneficial. Both companies are currently adopting artificial intelligence and machine learning features into their respective products and expect to achieve early success in that area.