Endava Acquires ComTrade Digital Services

Endava Acquires ComTrade Digital Services

Deal Financials

Implied Enterprise Value (€m):60.0

Transaction Overview

  • On August 17, 2020, Endava, a provider of agile transformation services, announced its acquisition of ComTrade Digital Services (CDS), formerly a division of UK-based ComTrade Group.
  • Headquartered in Dublin, Ireland, CDS is a provider of software engineering services and solutions including cloud, customer experience & design, digital security, embedded systems, global delivery & implementation, IoT, and predictive analytics.
  • This acquisition strengthens Endava’s presence in Southeastern Europe and its position in the financial services industry vertical, along with other technology subsectors such as, travel, energy and utilities, medical, and intralogistics.
  • Endava will hold back 10% of the purchase price for the next 2 years to satisfy any warranty or indemnity claims.
  • ComTrade Group, the former parent company of CDS, will continue to provide certain services to Endava for a period of time after the acquisition is completed.

M&A Activity in the IT Services/Digital Transformation Space Remain Robust

  • The IT services/digital transformation space has seen a steady increase in transaction activity, with participation from both strategic and private equity buyers.
  • A recent digital services transaction was Deloitte Touche Tohmatsu’s acquisition of the assets and business of
    KeyTree on August 11th, 2020. KeyTree is a provider of high-performance analytics, data visualization and business
    intelligence services.
  • Similarly, on July 28th, 2020 Cognizant acquired Microsoft cloud partner New Signature, as cloud transformation
    adoption continued to accelerate driven by the work-from-home environment.
  • Another notable transaction includes E-Source Companies’ acquisition of StrategyWise on July 27th, 2020. This is one of the many acquisitions E-Source pursued to expand on its data science and AI capabilities.
  • Businesses globally are continuing to heavily invest in digitalization in order to move to a cloud native environment as work-from-home is becoming the new norm post COVID.

About True Blue Partners, LLC
True Blue Partners is a boutique M&A advisory firm that serves lower mid-market enterprise software, service and solutions companies. It brings the rigorous strategic and financial perspective of bulge bracket firms with a company building approach and a steadfast partnership that only an independent boutique firm can deliver. For more information please visit www.truebluepartners.com or email us at info@truebluepartners.com.

TBP was NOT an advisor to this transaction.