Endava announces 2 corporate transactions
Endava: "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 SEC. 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, or 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 U.S., 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 June 1, bringing with them a profitable revenue stream. Endava intends to build on this core to rapidly grow its cloud software implementation capability."