ERP Acumatica-Today, Swedish-based ERP vendor IFS and U.S. based ERP vendor Acumatica are coming together. This transaction is actually one that involves IFS’ private equity owner: EQT. EQT Partners acquired IFS AB in 2016 and has now acquired Acumatica via the same funding pool.
The end result will be that the two firms will retain much of their autonomy; however, synergies from go-to-market activities, R&D efforts, etc. will be maximized between the two companies (more on this below). As such, this is not an acquisition by IFS, per se, but rather a tight affiliation between the two companies.
This is a very important distinction given the “acquisition fatigue” that customers are feeling of late, particularly in the cloud ERP market. The first assumption many might have is that this constitutes yet another merger, and the loss of two independent players for customer choice, but that is not the case.
As part of the deal, IFS CEO Darren Roos will have a seat on the Acumatica board. Financial terms of this deal were not disclosed. The official announcement stated:
EQT Partners, a private equity fund with $45B (€40B) of assets under management, has acquired cloud-native enterprise software provider Acumatica through the same investment vehicle that holds IFS AB (Industrial and Financial Systems). The structure of the investment ensures that both companies have a stake in each other’s success, and to further reinforce this coalition, 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.
Who are IFS and Acumatica?
Neither ERP vendor will be a stranger to diginomica readers. IFS is very big in asset-intensive industries and has, not surprisingly, a large following of customers in Europe. It also has offices in many parts of the world (a large one is in Itasca, Illinois). The company has been around many years and has a number of large aviation, capital equipment and other customers.
IFS has been pivoting heavily in recent years around greater support for IIoT technologies and the cloud. It has been working with many of its legacy, on-premises customers to make these moves impactful and economically viable.