The enterprise software market continued its consolidation march today as Sweden-based IFS announced it would acquire fellow ERP provider MultiPlus Solutions AS, based in Norway.
In a cash deal of unspecified size, IFS has agreed to purchase MultiPlus from its parent company, Qurius International Holding B.V. MultiPlus specializes in project-based software and counts among its customers marine companies, including shipbuilders and those engaged in offshore projects; companies specializing in engineering, procurement, construction, and installation; and project manufacturers, IFS said in a statement.
MultiPlus has 100 customers spread throughout Scandinavia, the United States, France, and China, among whom only a few are also IFS customers. Its ERP suite covers finance, project control, maintenance, manufacturing, document management, and human resource management. In its statement, IFS said it “intends to continue to support, maintain, and enhance the product, while realizing economy of scale and synergies related to having similar industry and solution competencies.” A company representative today did not provide details of those efficiencies, except to say that “a larger customer base within targeted industries/solutions will lead to synergies.”
Having set itself to the task of doubling product revenue by 2013, IFS has turned to acquisitions as part of that push. In response to a question about acquisitions, CEO Alistair Sorbie told Managing Automation on a conference call last month, “Hopefully, we’ll have some news in the second half.’’
Today, Sorbie said in a statement, “With the acquisition of Multiplus Solutions, IFS can be seen to be executing on its stated strategy for growth and doing so by growing in one of its primary target sectors. The industries served by project-based solutions is a market in which … IFS seeks to achieve a market-leading position.”
The deal size is likely small, as MultiPlus finished fiscal 2008 with revenue of NOK 45.9 million, or approximately $8 million. By contrast, IFS commanded revenue of SKr 2.518 billion in 2008, or approximately $350 million.
In fact, recent quarterly earnings reports have shown IFS to be nearly recession-proof, as the company’s sales have only increased in times of trouble. In the second quarter, IFS reported a 9% rise in revenue. That followed a 14% revenue spike in Q1.
Pending regulatory approval, IFS said it expects to close the transaction with a month.