IFS headquarters in Linköping, Sweden
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1983
IFS was founded in 1983. Oracle's development tools and relational data base were selected as the development tools and technical platform for IFS software. 1986
During its first years of operations IFS built up specific expertise in relational database technology and linked this with the knowledge of preventive maintenance which it had acquired in connection with assignments in the nuclear power industry. This
resulted in the development of IFS Maintenance, the first software product of IFS, which was launched in 1986. 1990
IFS Applications were complete. 1991
International expansion began in 1991 with the establishment of subsidiaries in Norway and Finland, and one in Poland the following year. 1993
IFS' first product with graphical user interface for Windows was introduced. IFS Nordic operations were increased with the establishment of a subsidiary in Denmark. A subsidiary was established in Malaysia a year later to develop the Asian market. 1994
IFS began a development project to transfer IFS Applications to object-oriented technology.
1995
IFS' program in the North American market began in 1995 with the establishment of a subsidiary in Raleigh,
North Carolina. Its first contracts were with American subsidiaries
of some of IFS' Swedish customers. In 1995, as part of the program to develop the Asian market, IFS formed a joint venture, Versa Torron Sistekindo, with an Indonesian consulting company marketing IFS Applications in Indonesia.
1996
IFS Maintenance was the first application using object-oriented technology to be installed at a customer site. In 1996 IFS issued new shares to institutional investors in Sweden and the United Kingdom. The acquisition of Avalon was an important step in the internationalization of IFS since the company had an organization and customer base in the U.S. and a
well-developed global distribution network. As Avalon and IFS had close co-operation during the years 1988-1991, Avalon's employees were familiar with IFS' products. 1997
Web clients for IFS Applications were launched. IFS Applications was available for use with the Windows NT operating system. IFS Applications' 98 was launched during the summer in its entirety in object-oriented technology. In January 1997, IFS established subsidiaries in the UK and in Germany. In March 1997, IFS reached an agreement with its partner in Turkey to form a jointly-owned company to serve the Turkish market. The new company began its operations during the
summer of 1997. In April 1997, IFS acquired a 75 percent interest in the Danish software company Pro:Con. The head office is in Copenhagen, with a branch in Vejle. This has substantially strengthened IFS' operations in Denmark. In May 1997 a Swedish software company, Softwind AB, was acquired. In October 1997, IFS acquired 50 % of the operations of Methodus Ltda. In Brazil. Methodus has sold IFS/Avalon's products on the Brazilian market since 1995.
In November 1997, IFS acquired 51 % of the French software company Eurinfo S.A. 1998
IFS launched Applications 99 globally, offering significantly more functionality than earlier versions. Acquisitions
- 15% of the shares of partner company IQSOFT in Hungary (75
employees) via its subsidiary
- IFS Brazil (50% owned), 60% of the shares of Menthor
Technologies in Sao Paulo
- 5% of the shares of IFS Argentina (8 employees) the
remaining
- 25% of the shares of IFS Applications Danmark A/S in exchange
for 51% of the shares of Pro:Con A/S, subsidiary of IFS
Applications Danmark A/S.
- The remaining 49% of the shares of Pro:Con A/S were then sold
to the company’s management and personnel. The sale brought a
capital gain of SEK 15 M. Half of the sale proceeds has been
cleared. The plan is to clear the remaining amount in the year
2001.
- 100% of the shares of IDOK AB, Sweden (89 employees) 100% of
the shares of GSB GmbH (122 employees)
- Companies acquired in 1998 accounted for 5% of net
revenue.
1999
The market launch of IFS Applications 2000 worldwide was carried out in September. More than 500,000 hours of development time was invested in the third generation of IFS’ component-based business system. In August, a Special General Meeting approved the decision of the Board of Directors to carry out a new share issue of SEK 396 million during the period Sept 27–Oct 8, 1999. The operative system, Linux, has now been added to the other platforms used, NT and Unix. During the fourth quarter, IFS Applications 2000B was finalized, an extra release focusing especially on web storefronts, portals, and mobile Internet
functions. In November, IFS’ outsourcing company, @IFS, commenced production and had won seven new contracts by the end of the year. @IFS operates and maintains enterprise applications and e-business operations for customers. Acquisitions
- 73% of the shares in Exactium Ltd., Israel. The company specializes in the development and sale of “front-office software,” an area where products for product configuration and sales support are important components. Exactium is registered in Tel
Aviv, while its main operations are conducted by the wholly owned subsidiary,
Exactium Inc., in Atlanta, Georgia. The company has approximately 20 employees. - In May, IFS acquired 51% of the shares of Brainware S.A., a Greek consulting company. The company has 39 employees.
- In September 1999, IFS tendered an offer for all shares outstanding in EMS Inc., the American ERP systems supplier. As a result of the acquisition, IFS’ American operations increase from 230 to about 500 employees, and representation in the US expands
from four to 12 offices, with good geographical coverage. EMS has a customer base of about 1,600 clients.
- 33% of the shares in IFS Indonesia, in which IFS had previously owned 25% of the shares. The company has been a distributor of IFS products for four years and currently employs approximately 100 consultants.
Revenue for 1999 amounted to SEK 26 M. IFS Indonesia has been consolidated from January 1, 1999.
2000
IFS Applications 2001 was released in August 2000 with over 500 improvements. Acquisitions
- 100% of the shares in BBC Consulting Group LLC, San José, USA. The company, which has spearhead expertise in Internet-based business-to-business solutions, had 24 employees on acquisition.
- 33% of Parade Software Pty, Ltd., Melbourne, Australia. Like BBC, this is a consulting company, with 12 employees at the time of acquisition. The acquisition of Parade marks IFS’ entry proper into the Australian market.
- 100% of the shares in Elanor spol. s.r.o., Czech Republic. The company had 70 employees when acquired.
- 60% of Vendimo Business Solutions AB, Gothenburg, Sweden. The company develops and sells sales support systems, which are a core part of most e-business solutions today. Vendimo’s products are already integrated with IFS Applications. On acquisition
the company had 23 employees.
- 49% of the shares in IFS France. IFS acquired 51% of the shares in the company in 1997.
- 100% of the shares in IM Brännwall AB, Luleå, Sweden.
On acquisition, the company had 5 employees.
Divestments
On signing a collaboration agreement concerning e-business products with Pivotal Software Inc., USA, (NASDAQ: PVTL), IFS sold its 76% share of Exactium Ltd. to Pivotal. Profit from the sale of the Exactium shares amounted to SEK 180 M.
The collaboration agreement provides IFS with access to Pivotal’s e-business components as well as continued access to Exactium’s configurator, which will continue to be sold in IFS’ name. In addition to cash, IFS received 830,932 shares in Pivotal for the sale of its shares in Exactium. Of the shares received, IFS sold 655,852 during 2000. Partners
During the year, IFS has entered into a number of global partnerships with partners who are market leaders within specific industry segments. These partners will drive sales within their segments but will also make IFS less sensitive to fluctuating
demand for consulting services as they will also be responsible for an increasingly larger amount of the implementation work. - A distribution agreement has been reached with ABB Automation, aimed mainly at asset-intensive companies,
by which ABB offers its customer segment components for service, maintenance, logistics, human resources, and financials from IFS Applications as part of its Industrial IT concept. - A strategic alliance has been entered into with Atos Origin that commits its sales organization to actively sell IFS Applications to existing and prospective customers, mainly in Western continental Europe and the US. Moreover, their consultants will
be trained so that they can participate in implementation projects, independently or in collaboration with IFS.
- A joint venture company was formed with BAE SYSTEMS to target the market for logistics, fleet management, repairs, and maintenance in the defense and civil aviation sectors. The company combines IFS’ competence within technological and standard
software with BAE SYSTEMS’ strong market presence and experience of military and civilian aviation technology. The company reported revenue for the fourth quarter totaling SEK 62 M.
The company is included in the consolidated accounts from October 1, 2000, according to the principal of proportional consolidation. IFS owns 50% of the shares in the company, which has 173 employees. - A partnership with Cap Gemini Ernst & Young has been initiated. The parties will jointly deliver business applications to customers worldwide, focusing on service and maintenance with the energy and utilities sector.
They will also establish a Center of Expertise based on IFS Applications with hubs in Scandinavia and France. The Center will furnish Cap Gemini Ernst & Young and IFS with global support for sales and delivery. - A strategic alliance was formed with IBM, which means that IBM will actively support joint sales initiatives primarily within a number of defined market segments and includes minimum volumes of IFS licenses. To increase the accessibility of IBM’s
customer base to IFS Applications, IBM will contribute technological and personnel resources to the development of IFS Applications.
Several other extensive partnership agreements were reached during the year with companies such as
Toyo Engineering Corporation, Japan, (maintenance solutions), and Pivotal, US, (CRM solutions). In addition to these global agreements, a number of significant partnerships have been formed with strong local actors. 2001
IFS Applications 2002 was released, featuring more than 150 ways to cut costs and improve efficiency. Alliances
- The number of partners increased during the fourth quarter, especially in new markets, and joint venture companies were established in the People’s Republic of China, Hong Kong and Russia. The setting up of competence centers at partner companies,
initiated in the third quarter, has continued, and the first complete systems have been delivered. Additional resources have been allocated for training and support.
- IFS Applications is the first external product to be Industrial IT certified by ABB, and the companies continue to develop joint offerings for the market. Several quotations have been submitted in collaboration with ABB.
- Collaboration with Atos Origin has been extended to several countries and specifically within the automotive industry. Joint sales teams have been formed in several countries.
- BAE SYSTEMS-IFS has been chosen to deliver maintenance solutions to the Joint Strike Fighter program.
- Collaboration with Cap Gemini Ernst & Young, primarily with service management, has continued to bear fruit.
A joint initiative has begun with respect to the first prospective projects in North America. - Several technology projects have been started with IBM, including work with mobile clients. IFS Applications has become IBM Cluster proven. IBM and IFS continue to implement a number of jointly targeted marketing initiatives in several countries.
- Collaboration with Deloitte & Touche is progressing well in the North American market, with several contracts resulting.
- License sales via NEC in Asia have increased considerably.
- During the second quarter, GE Engine Services and IFS entered into an alliance whereby the companies will jointly market IFS Aviation software to the commercial aviation maintenance repair and overhaul (MRO) industry.
This alliance makes GE Engine Services the exclusive distributor for IFS’ integrated aviation software solution to commercial airlines and MRO facilities. GE will handle sales, marketing and implementation, with IFS providing integrated software solutions
and trainings designed to meet the complex IT requirements of commercial aviation MRO organizations. The alliance with GE Engine Services is progressing well, with the first GE implementation expected to go live in the first quarter of 2002. - ABB acquired a minority interest in IFS. The investment deepens the technical and commercial relationship between the two companies.
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