IFS and Acumatica – Global Cloud ERP Powerhouse under EQT Ownership
It was announced this week that Acumatica will be acquired by EQT Partners, a leading private equity firm with an exceptional history of developing successful and sustainable companies. Acumatica will be owned 100% by EQT, a worldwide entity with proven experience in growing midmarket companies, which will provide Acumatica with greater financial resources and industry expertise.
Acumatica stated in a notice to their partners, “And that’s the only thing that really changes.” Acumatica’s new ownership is fully aligned with their emphasis on technology investment and product strategy. There will be no changes to Acumatica’s key business relationships.
From the customer’s perspective, nothing will change. Acumatica is still committed to creating happy customers. There will be no changes to pricing, and product support will only improve.
EQT will hold Acumatica in the same portfolio as IFS, a leading global, enterprise applications provider of ERP, enterprise asset management (EAM) and field service management (FSM) solutions. IFS is a $600+ million global company with offices in 65+ countries and more than 3,600 employees. It is important to note that Acumatica and IFS are not merging. Instead they will be partner companies, both members of the same EQT fund, and complementary in the following ways:
- Acumatica will maintain its growth and agility while at the same time having the advantages of the partnership with IFS to include global support for large Acumatica customers.
- Acumatica can accelerate expansion into key markets, and IFS will provide the guidance and best practice to support this growth.
- IFS will act as a sales lead referral engine to Acumatica; the IFS enterprise ERP product will in no way compete with Acumatica offerings: where Acumatica’s sweet spot is companies with annual turnover of roughly $20M USD – $250M USD, IFS tends to target companies $250M USD to $5B USD.
- Acumatica and IFS remain two separate companies.
- The Acumatica leadership team remains in place with everyone performing the same functions they always have and will now have access to IFS leadership team for knowledge sharing.
- Acumatica employees will also be unaffected and continue doing the same mission-critical work that has led to their success so far. In fact, Acumatica will be hiring more people, faster, just as they will focus with even more intensity on advancing and improving the product.
- For customers it will be business as usual. Acumatica’s collective priority is to create as many happy Acumatica customers as they can. There will be no changes in pricing or their product use rights, and product support will only improve with greater availability worldwide.
Finally, not even the Acumatica name will change. They are still Acumatica, and now they will have the benefit of collaborating with an enterprise applications provider.
If you have any concerns or would like to discuss this matter one-on-one, please contact us, and we will answer any questions you may have.