London-based IFS makes industrial automation software that helps manufacturers, construction firms and other asset-heavy organizations operate more efficiently and reduce their emissions.
The investment by Generation Investment Management is the firm’s third deal out of its private equity strategy, which looks for established, private businesses with the potential “to drive sustainability transformations in their industries” (for background see, “For climate fund managers with dry powder, there’s rarely been a better time to invest”). The PE strategy has also backed UK-based Octopus Energy and wealth management service provider FNZ.
“IFS stands out as a clear leader in industrial software, well positioned to support asset owners and organizations that place service and sustainability at the heart of their operations,” said Generation’s Chris Ragona.
Potential for scale
IFS has some 5,500 customers in more than 80 countries. Its AI-based software helps cut fuel and waste through predictive maintenance, optimized routing and other efficiency measures, while reducing downtime.
“The path to a low-carbon future is through new technologies that deliver both commercial and sustainability benefits,” said IFS’s Sophie Graham. Generation will work with IFS to expand its sustainability-linked product offerings and boost its impact measurement and associated economic benefits to customers.
