Endava – a leading technology services company combining sophisticated engineering, industry expertise and a people-centric mindset – recently announced it entered into a definitive agreement to acquire 100% ownership of GalaxE Group, 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. And when completed, the transaction will add approximately 1,650 employees and provide several key strategic benefits to Endava:
1.) 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.
2.) Offers deep domain expertise in the US healthcare market – Over 70% of GalaxE’s revenues come from US healthcare clients, including clients in the payor services and pharmaceutical industries.
3.) 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.
4.) 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 enhancing its ability to win new opportunities.
The total consideration for the acquisition is up to $405 million, primarily in cash with some stock, of which $30 million is conditional upon the future performance of the GalaxE business. And the deal is expected to close in early April 2024, subject to the completion of customary closing conditions and approvals.
BofA Securities serves as financial advisor to Endava, and Akin Gump Strauss Hauer & Feld LLP serves as legal advisor. JP Morgan Securities LLC serves as financial advisor to GalaxE, and White & Case LLP serves as legal advisor.
KEY QUOTES:
“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. Additionally, I am very excited about the potential of the GxFource accelerators to help our clients achieve digital transformation more effectively and efficiently.”
– John Cotterell, Endava’s CEO
“I’m very excited to expand our client-focused digital transformation capabilities as a member of the Endava family. The acceleration of digital transformation, driven by dynamic technological changes in data management and AI, is expanding the opportunity in the market for firms like ours. Our employees will have exponentially more opportunities for professional growth and career development. The new combined team will have deep technical talent and an entrepreneurial approach which is a perfect fit for evolving client requirements. The breadth of the Endava platform significantly expands the potential impact of investments we have been making in our GxFource suite. Both organizations’ clients will benefit from the sophistication of our proprietary solutions delivered at a global scale. The team and our clients are incredibly excited about this combination and the future!”
– Tim Bryan, founder and CEO of GalaxE
