Investment Case

Investment case

IAR Systems is a profitable company with a unique offering, a central role in well-established partner networks and new opportunities for growth.

Embedded systems are found everywhere today, controlling functions in digital products in many different areas. IAR Systems is a profitable company with a unique offering, a central role in well-established partner networks and new opportunities for growth.

A profitable growth company

IAR Systems is in a unique market position thanks to its leading technology. The company was founded over 30 years ago, and since then has continually evolved and refined its products in order to meet customer demand. IAR Systems is headquartered in Uppsala, Sweden, but due to the company’s international reach, over 95% of sales are attributable to markets outside the Nordic region. Most product development takes place in Uppsala, but also to a certain extent in the USA. In addition, there are sales and support offices in Sweden, Germany, France, Japan, China, Korea, the USA and Brazil. IAR Systems is represented in an additional 43 countries around the world through its distributors. The company has a license-based sales model in which IAR Systems sells a license to a user who is then authorized to use IAR Embedded Workbench. The model is flexible and can be adapted depending on the number of users the customer needs. This model creates closer relationships with customers at the same time as it generates a consistent revenue stream.

A unique offering provides competitive advantages

In a digitalized global world, the software that IAR Systems offers is a key enabler for the development of smart products. Today, smart products are found across all industries – from consumer electronics, medical technology and healthcare to manufacturing and the automotive industry. All smart products contain one or more processors. IAR Systems’ IAR Embedded Workbench helps developers program these processors so that they fulfill their function in the embedded system. 


IAR Embedded Workbench supports over 10,000 processors for embedded systems with 8- 16- and 32-bit architecture, which is a major reason why IAR Systems holds such a unique position in the market. This broad support creates far-reaching flexibility and benefits for customers, since they can maintain their development environment even when they intend to change processors for reasons such as a new project. In addition, with IAR Embedded Workbench developers can reuse 70-80% of the previously developed code when changing to a new processor, producing valuable savings in both time and money. IAR Systems’ product portfolio is continually being refined, and in recent years the company expanded its portfolio by offering add-on products.

Aside from driving lucrative additional sales, a broader product portfolio enables IAR Systems to further strengthen its competitiveness. With IAR Embedded Workbench, customers can develop products that are faster, cheaper and more efficient than before. When customers sign a support contract, they gain access to continual product maintenance and updates as well as worldwide technical support. IAR Systems’ support department is well-known and much appreciated for its expertise and quality. IAR Systems has a large and loyal customer base, with a share of repeat customers of about 95%. The main explanation for the high percentage of repeat customers, aside from broad support and a comprehensive offering, is that IAR Systems delivers high-quality and user-friendly products.

A world-leading player in a large partner network

IAR Systems plays a key role in well-established networks and cooperates with the leading players in the market. This ecosystem of partners both complements and broadens the company’s offering. Thanks to strategic partnerships and long-standing knowledge sharing with leading processor makers such as Renesas, NXP, STMicroeletronics and Texas Instruments, as well as the leading supplier of processor licenses ARM, IAR Systems has by far the market’s most comprehensive processor support and a completely independent position as a tool supplier. These partnerships also result in exchanges of technology through software integrations with partnering tools and the like, which additionally strengthens IAR Systems’ products.

New growth opportunities

The market is now facing further growth driven by the Internet of Things. Connected products and services have grown enormously in recently years. IAR Systems enables the Internet of Things and innovation in this field by linking products and technologies. IAR Systems has already demonstrated the strength of its business model and is thus well positioned to capitalize on this opportunity. Historically, the number of users of IAR Systems’ products, C/C++ developers, has been stable. The Internet of Things will generate increased demand for smart products with embedded systems and therefore also boost the need for C/C++ developers. In addition, many of the developers currently working on some type of IoT-related development in languages other than C/C++ will need to start working with products containing embedded systems, thus becoming potential new users of IAR Systems’ products.

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