Accounting colossus EY has acquired ifb, a Germany-based consultancy that specializes in carrying out software modernization projects for banks and insurers. 

The deal will bolster EY’s fast-growing financial technology business in Europe.

Germany-based ifb has been in business for over 30 years. It’s been an SAP partner for more than 25 of those years.

SAP is Europe’s largest software company. Its main specialty is selling applications that large companies can use to manage their employees’ work. 

The consultants at ifb spend much of their work week setting up SAP software for banks and insurers. The reason companies have to hire a consultancy like ifb for the task is that setting up SAP software requires highly specialized skills.

The task can also take a long time. Rolling out one of SAP’s applications across a large organization can take months in some cases. 

One of ifb’s main focus areas is assisting companies with the task of setting up an SAP application called S/4HANA Finance. The application enables accountants to access all their their company’s financial data in one place instead of having to open multiple tabs. 

S/4HANA Finance also offers analytics features as well. It allows accountants to perform tasks such as predicting the financial impact of a corporate acquisition.

Clients work with ifb on a range of other IT projects as well. In addition to setting up SAP software, the consultancy works with companies to implement financial applications from other vendors. 

Through the acquisition of ifb, EY is absorbing a team of more than 400 professionals spread across nine countries. 

EY, like other major accounting firms, has over the past decade significantly expanded its presence in the IT services market. The EY business that focuses on providing IT services to banks and other financial services firms in Europe grew 40% over the past year.

Buying ifb will accelerate the growth of that business. It will also enable EY to expand the breadth of its technical consulting services.  

“This acquisition is part of the wider EY Financial Services Consulting growth strategy in Europe and across the globe,” stated EY executive Alex Birkin. “I look forward to the many opportunities it will create for EY clients and teams.” 

Integrating acquired companies into an organization is often difficult. But in the case of EY and ifb, the task may be somewhat simpler since the two firms already have extensive experience working together: they have collaborated on multiple client projects over the years. 

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