Questions Acumatica Acquired by IFS Investment Firm

I am glad they are being kept a separate entity.  I don't know the intentions of EQT, but if I were a betting man, I would say they are want Acumatica to invest into beefing up their Manufacturing offering.  IFS is catered to serving an upper mid-market manufacturers, so if they could position Acumatica to be a lower-mid market option for manufacturing, then they could hope to catch those customers who grow out of Acumatica into IFS?  Just speculation, but it looks like they are decent at growing their properties.  IFS enjoyed great revenue gains in the past few years, most likely due to their acquisitions in cloud services company WorkWave, growing from ~445 million in 2017 to +600 million revenue now.  How much of those gains are from upselling their current client base vs acquiring new customers though? *shrug*

Overall I'm neutral, but optimistic about it.  We aren't in manufacturing, but maybe we'll see other improvements in distribution to go along with mfg?  It is a good sign that they aren't merging or gutting this product and it's team, but are in fact growing it by investing more in the Acumatica team.  I just hope it stays that way.

In my opinion this is all about EQT's end game.  As with all PE it is about making money.  If they are in for the long haul great.  If they are in for a short term then that is a different story.  Only time will tell.

-John

I'm definitely hoping for the long haul.