Endava to Acquire GalaxE Solutions to Boost Its Position in North America Healthcare With Delivery from India

Endava (NYSE: DAVA), a leading technology services company combining world-class engineering, industry expertise and a people-centric mindset, has entered into a definitive agreement to acquire 100% ownership of GalaxE Group, Inc. (“GalaxE”), a global IT and business solutions provider headquartered in New Jersey, United States.

Founded by Tim Bryan over 30 years ago, GalaxE has been singularly focused on driving digital transformation for Fortune 500 companies in the Healthcare, Financial Services and Retail industries.

When completed, the transaction will add approximately 1,650 employees and provide several key strategic benefits to Endava:

• Significantly expands Endava’s footprint in North America. GalaxE brings decades of experience serving customers in North America, significantly expanding Endava’s go-to-market and growth initiatives in the region.
• Provides deep domain expertise in the U.S. Healthcare market. Over 70% of GalaxE’s revenues come from U.S. Healthcare clients, including clients in the payor services and pharmaceutical industries.
• Establishes Endava’s delivery operations in India. With nearly 1,200 employees in India, GalaxE serves as the first building block underpinning the expansion of Endava’s delivery operations in India.
• Complementary platform capabilities focused on enterprise digital transformation. GalaxE has developed a comprehensive suite of digital accelerators called GxFource, which offers broad applicability to Endava’s current clients while also enhancing its ability to win new opportunities.

Total consideration for the acquisition is up to $405 million, primarily in cash with some stock, of which $30 million is conditional upon future performance of the GalaxE business. The transaction is expected to close in early April 2024 subject to the completion of customary closing conditions and approvals, including the expiration of the required waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976.

“We are delighted for the GalaxE team to join Endava. This acquisition fits with our vision and strategy of providing our clients with a global delivery platform. As our first footprint in India, it gives us access to a deep and sophisticated talent pool and positions us well for meeting increasingly complex customer needs. Additionally, we believe that GalaxE’s deep expertise in Healthcare will help us scale to one of our most desirable and fast-growing industry verticals,” said John Cotterell, Endava’s CEO. “Additionally, I am very excited about the potential of the GxFource accelerators to help our clients achieve digital transformation more effectively and efficiently.”