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LONDON - Endava (NYSE:DAVA), a provider of next-generation technology services with a market capitalization of $1.27 billion, and AlixPartners, a global consulting firm, have announced a strategic partnership to deliver holistic, end-to-end solutions for clients in various sectors, including Financial Services, Retail, Automotive, Energy, Telecommunications, and Private Equity. According to InvestingPro data, Endava’s shares currently appear undervalued compared to their Fair Value, suggesting potential upside for investors.
The partnership, which was made public today, combines the operational consulting expertise of AlixPartners with Endava’s technological capabilities in areas such as AI, cloud adoption, and data analytics. The collaboration aims to accelerate digital transformation, reduce project delivery risks, and create sustainable value for clients. InvestingPro analysis shows Endava maintains strong financial health with a current ratio of 1.88, indicating solid liquidity to support its strategic initiatives.
Paul Kelly, Global Co-Leader of the Technology Practice Group at AlixPartners, emphasized the importance of digital innovation, AI, and automation, stating that the partnership builds on a proven relationship to help clients navigate disruption. John Cotterell, CEO of Endava, added that the alliance aligns technology with business strategy, offering clients a comprehensive approach to drive innovation and long-term success.
The partnership is expected to provide clients with faster time-to-market, effective execution, access to a broader pool of knowledge, and early risk identification and mitigation. The focus will initially be on sectors where both companies have established expertise.
Endava is recognized for its AI-native approach and industry expertise, consulting with customers to create solutions that drive transformation and deliver lasting impact. With annual revenue of $950.78 million and a five-year revenue CAGR of 21%, the company employs over 11,000 people across Europe, the Americas, Asia Pacific, and the Middle East as of December 31, 2024. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report, offering detailed analysis of Endava’s financial performance and growth prospects.
AlixPartners is known for its results-driven approach, helping businesses capitalize on opportunities and address challenges. Founded in 1981, the firm is based in New York with offices in more than 20 cities worldwide.
The information for this news article is based on a press release statement. The forward-looking statements included in the press release involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Endava and AlixPartners have not updated their views since the release of the statement. Analysts maintain a positive outlook on Endava, with consensus forecasts showing expected net income growth this year and an EPS forecast of $1.60 for FY2025.
In other recent news, Endava has reported its second-quarter fiscal year 2025 earnings, revealing a mixed performance. The company exceeded analyst expectations with an adjusted diluted EPS of 0.3p, surpassing the forecast of 0.25p. However, revenue came in slightly below projections at £195.6 million. Despite the revenue miss, Endava’s profit before tax (PBT) margins and earnings per share (EPS) exceeded expectations, attributed to effective cost management strategies. In terms of future guidance, Endava projects revenue between £198-200 million for Q3 FY2025, reflecting a 13-14% growth in constant currency terms, and full-year revenue guidance stands at £795-800 million. Needham analysts recently adjusted their outlook for Endava, lowering the stock’s price target from $43.00 to $38.00, while maintaining a Buy rating. Additionally, Endava has joined OpenAI’s Beta Services Partner Program to enhance its AI capabilities, aiming to strengthen its position in the enterprise AI adoption market. These developments highlight Endava’s strategic initiatives in AI and digital transformation, despite short-term revenue challenges.
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