To help meet the demand of companies shifting asset management methods from legacy applications to cloud-based technology, ERP provider IFS has signed an agreement to acquire Dutch asset management software company enterprise (EAM) Ultimo.
IFS, which is based in Sweden and has customers worldwide, says it is acquiring Ultimo because it believes the company’s SaaS offering can provide high levels of flexibility and configurability to customers.
EAM can be thought of as a subset of ERP software, providing tools and applications to manage the lifecycle of physical assets in a business, in order to maximize their value.
The acquisition of IFS comes at a time when the EAM market is growing due to the shift to cloud architecture, growing demand for an enterprise-wide view of assets for strategic planning and growing deployment of IoT platforms and devices.
The global EAM market is expected to grow at a compound annual growth rate (CAGR) of 8.7% to reach $5.5 billion by 2026, from $3.3 billion in 2020, according to the company of market research MarketsandMarkets.
IFS, which expects the acquisition to close in Q3 2022, plans to use Ultimo’s software in conjunction with its own cloud-based EAM offering. Ultimo is focused on providing EAM to midsize companies in manufacturing, healthcare, logistics, infrastructure and utilities.
After refreshing its ERP suite every three years since 2012, IFS last year moved to a six-month refresh cycle to ensure customers always have access to its latest features.
Market research firm Gartner, in its Market Share: Enterprise Resource Planning Worldwide 2021 report, positioned IFS as the top EAM vendor by revenue, with 18% market share, after sales grew 29 .1% year over year. The Ultimo acquisition should help IFS compete in the EAM market with vendors such as IBM, SAP, Microsoft and Oracle.
Ultimo, which was founded in 1988, has 180 employees and more than 2,000 customers, including London Gatwick Airport, BASF, VTTI, Ravago, Vion Food Group, Argent Energy and Hutchison Ports ECT Rotterdam