IFS to acquire Copperleaf Technologies to bolster global enterprise software capabilities

Industrial and Financial Systems, IFS AB (“IFS”) has agreed to acquire all issued and outstanding common shares of Copperleaf Technologies Inc. (TSX: CPLF) for $12.00 per share in cash, totaling an equity value of approximately CAD $1.0 billion on a fully diluted basis. The acquisition price represents a significant premium, with an 18% increase over the June 10, 2024, closing price and a substantial 66% above the 90-day average, reflecting a 70% increase from May 3, 2024. This strategic move underscores IFS’s commitment to expanding its robust portfolio in Enterprise Asset Management (EAM) and Field Service Management (FSM).

Strategic Synergy and Expertise Enhancement

The merger is poised to create a formidable force in the enterprise software domain, particularly enhancing capabilities in Asset Investment Planning and Management (AIPM). IFS, a leader in enterprise software for FSM and EAM, recognizes Copperleaf’s significant contributions to AIPM solutions tailored for critical infrastructure management. The integration is expected to harness the strengths of both entities to deliver enhanced support and innovative solutions to global customers.

Copperleaf’s award-winning culture and deep-rooted expertise are expected to continue flourishing under IFS’s stewardship, with significant investments planned for the existing teams in Vancouver, who are central to the future strategies of the merged entity.

Leadership Commentary

Amos Michelson, Chair of Copperleaf, remarked, “This transaction is a great milestone in Copperleaf’s journey. It’s evidence of IFS’s belief in our organization and recognition of our success, and rewards our shareholders with attractive cash consideration, providing immediate value and liquidity for their shares.”

Echoing this sentiment, Darren Roos, Chair of IFS, stated, “The combination of Copperleaf and IFS creates compelling value for the complex, asset-intensive customers we serve as well as partners, investors, and employees.”

Mark Moffat, CEO of IFS, emphasized the strategic alignment, noting, “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 we do.”

Paul Sakrzewski, CEO of Copperleaf, added, “IFS deeply understands what we do, and the combination of these two best-in-class companies with such complementary skill-sets and product offerings will provide the platform for an even greater opportunity to generate value for our clients, partners, and employees.”

Transaction Details and Future Outlook

The transaction is expected to close in the third quarter of 2024, subject to customary conditions including court approval, approval by Copperleaf shareholders, and regulatory clearance under the Canadian Competition Act. This acquisition marks a significant step in IFS’s strategy to lead the global market in AI-powered enterprise asset management and service management solutions, fostering a future of growth and innovation for asset-intensive industries worldwide.