IFS Restructures the IFS Defence Joint Venture

IFS and BAE Systems plc recently announced the restructuring of IFS Defence Ltd into a strategic relationship. IFS Defence was established as a joint venture by the two companies in 2000 to serve as a go-to-market vehicle for the military, defense, civil aviation, and asset service sectors of the global aerospace and defense (A&D) industry.
The move to infringe on the A&D market supremacy of SAP and Oracle has had significant success. Over the last 13 years, IFS Defence has played a pivotal role in several major implementations for leading A&D organizations, including the Eurofighter program, Her Majesty’s Naval Bases in the UK, SAAB, Lockheed Martin (in support of the British Army and the F35 Joint Strike Fighter program), and Emirates Airlines.
As IFS Defence has matured into a recognized market leader, IFS and BAE Systems have concluded that their future relationship would be better served through a strategic relationship. The move should enable IFS to capitalize on the strong market position it has built up in the A&D industry and form new channel relationships while keeping its alliance with BAE Systems intact.
IFS will establish a new dedicated center of excellence to lead its A&D strategy and to take advantage of the experience and expertise developed to date. The vendor hopes to explore new opportunities in the broader A&D industry (e.g., aviation and related sectors such as government and security). This step is also in line with IFS’ focus on developing a global partner ecosystem. In addition to the strategic relationship with BAE Systems, IFS intends to continue developing new alliances to expand its industry footprint.
BAE Systems and IFS are currently working towards structuring the business so that the trade, assets, and employees focused on IFS Applications will transfer to IFS in accordance with local labor laws, while the business related to Unit Maintenance Management Systems (UMMS) will be retained by BAE Systems. All transactions are expected to be completed within two months.
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