2 min Analytics

IFS splashes out a significant amount to acquire AIPM software provider Copperleaf

IFS splashes out a significant amount to acquire AIPM software provider Copperleaf

Swedish ERP vendor IFS is acquiring Copperleaf, a Canadian company specialising in AI-powered enterprise solutions for the energy, utilities and logistics sectors, among others. IFS is paying 1 billion Canadian dollars for the company (about 673 million euros), which will leave the TSX, the Toronto Stock Exchange.

IFS is paying 12 dollars (a little over 8 euros) per share, slightly more than the 10.15 dollars a Copperleaf share was worth on June 10, the day before the acquisition became final. Incidentally, on May 3, the last trading day before IFS made its bid, this difference was considerably larger, about 70 percent. Back then, a Copperleaf share was doing about 7.06 dollars (5.12 euros). In the intervening time, the company has gained in value partly because its quarterly earnings looked good.

Copperleaf is best known for its sophisticated asset investment planning and management (AIPM) software, which is used worldwide to manage more than two trillion dollars in physical and digital assets.

The software helps make large investment decisions in capital-intensive industries such as energy, logistics and transportation, pharmaceuticals, and utilities. Key customers include U.S. energy companies ONE Gas and National Grid and their Canadian counterpart Manitoba Hydro.

Two companies, same principle

“I am deeply excited about what Copperleaf brings to our extended customer offering”, said Mark Moffat, CEO of IFS. “We combine two companies built on the same principles: world-class innovative technology with unrivaled time to value, asset and industry expertise delivering exceptional ROI, and organizational cultures that have always put the customer at the center of everything they do.”

In his statement, Paul Sakrzewski, CEO of Copperleaf, emphasized the potential for accelerated growth. I am incredibly proud of the work Copperleaf has done to establish and create the business we have today. Our next phase of growth as part of IFS will enable us to accelerate even faster and offer customers even greater capabilities.”

More tech companies leaving the stock market

Copperleaf is one of many Canadian tech companies that went public during the coronavirus period. Several have since left the TSX, as higher interest rates have made investors less eager to acquire shares of these sometimes ‘unproven’ companies.

Companies such as CloudMD, Nuvei, TrueContext and Dialogue Health Technologies were acquired and taken private, mostly by US or Canadian private equity firms.

Also read: IFS sees “no limit” in growth in FSM; AI plays pivotal role