Endava to acquire GalaxE for $405Mn, enters India market
LONDON, UNITED KINGDOM — Tech firm Endava is set to buy a 100% stake in information technology firm GalaxE for $405 million.
The acquisition, subject to customary closing conditions, is expected to close in early April 2024. Once sealed, 1,650 workers from GalaxE will transfer to Endava.
Total consideration for the acquisition is up to $405 million, primarily in cash with some stock — $30 million of which depends on GalaxE’s business performance.
The acquisition comes amid poor business performance by Endava. The firm’s Q2 FY2024 declined by 10.2% to £183.6 million (US$232.9 million) from £205.2 million (US$260.4 million).
The deal marks Endava’s first foray into India, as GalaxE employs over 1,200 workers in the country.
Endava also boosts its presence in the U.S. healthcare market, as over 70% of GalaxE’s revenues come from medical industry firms, including clients in the payor services and pharmaceutical industries.
“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,” said John Cotterell, Endava’s CEO.
“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,” he noted.
“The breadth of the Endava platform significantly expands the potential impact of investments we have been making in our GxFource suite,” said Tim Bryan, founder and CEO of GalaxE.
“The new combined team will have deep technical talent and an entrepreneurial approach which is a perfect fit for evolving client requirements,” Bryan said.
