Endava (NYSE: DAVA): As previously disclosed, Worldpay has an option to
purchase Endava Technology SRL, also referred to as “the Captive,” from
us. The Captive is located in Bucharest, Romania and its 138 current
employees work exclusively for Worldpay. Worldpay requested, and Endava
agreed to allow, an early exercise of the option, which was not
exercisable until September 2019. The aggregate purchase price for the
Captive is within the previously agreed range as disclosed in Endava’s
filings with the Securities Exchange Commission. The transaction is
expected to close during the first quarter of Endava’s 2020 fiscal year,
subject to Romanian regulatory approval. Upon closing, the employees of
the Captive will become employees of Worldpay.
In connection with the transaction, Endava has agreed to provide
Worldpay certain transition services under the existing Master Services
Agreement (MSA) between Endava and Worldpay, which will remain in place
following the closing of the sale of the Captive. This strong
relationship is being further strengthened through an extension of
volume commitment timelines under the MSA and a potential opportunity to
expand our collaboration into the US, which remains subject to entry
into a binding agreement. Currently 291 Endavans are deployed on
Worldpay projects contracted for under the MSA, which is in addition to
and separate from the work done by the Captive and its employees for
Worldpay. This transaction does not impact Endava’s FY19 guidance and we
plan to provide FY20 guidance on our next earnings call.
Further, in recognition of growing demand for cloud-based CRM expertise
as a facilitator for digital transformation, including requirements
identified in many of Endava’s clients, we are delighted to announce
that a 32 person strong team of highly experienced cloud software
implementation specialists based in Romania joined Endava on 1 June
2019, bringing with them a profitable revenue stream. Endava intends to
build on this core to rapidly grow its cloud software implementation
capability.
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements may be identified by the use of terms and
phrases such as “believe,” “expect,” “intend,” “plan,” and other similar
terms and phrases. Such forward-looking statements include, but
are not limited to, the statements regarding the impact to current
guidance and expected timing of future guidance, expected timing of the
closing of Endava’s sale of the Captive to Worldpay and Endava’s
relationship with Worldpay following the closing, the impact of the
acquisition of the team of cloud software implementation specialists in
Romania and the potential expansion of that team. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that could cause actual results to differ materially from the
results anticipated by these forward-looking statements, including, but
not limited to, : the risks and uncertainties discussed in the “Risk
Factors” section of Endava’s Annual Report on Form 20-F filed with the
Securities and Exchange Commission on October 11, 2018 and final
prospectus filed with the Securities and Exchange Commission pursuant to
Rule 424(b)(4) on April 18, 2019.
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