– Greatly Strengthens Next Generation One-stop IT Services Capability
– Expands Business Globally
– Accelerates Customers Grasping Digital Transformation Business Opportunity
HONG KONG — Automated Systems Holdings Limited (“ASL” or “the Group”) (stock code: 771), a trustworthy and professional information technology (“IT”) partner in the region, is pleased to announce the successful acquisition of Grid Dynamics International, Inc. (“Grid Dynamics”), following approval from the Committee on Foreign Investment in the United States. Grid Dynamics becomes ASL’s wholly-owned subsidiary. The consideration was approximately US$118 million. Upon acquisition, ASL becomes a global IT service provider with an expansion of geographical coverage beyond Asia Pacific, over 2,000 employees and the annual revenue reaches approximately HK$2 billion.
Grid Dynamics is a provider of open source, scalable and next-generation e-commerce technology solutions in the areas of omni-channel e-commerce, cloud enablement, big data analytics and continuous delivery. It is well-known for providing transformative, mission-critical cloud solutions for enterprise customers in the retail, finance, media and technology sectors.
With a new generation of digital transformation fast emerging, the traditional IT enterprise and application architecture can no longer meet the digital needs of today’s enterprises. In the pursuit of digital transformation, more and more enterprises are looking for digital transformation-enabled business applications to help them reduce costs, streamline operational processes and improve business agility. According to International Data Corporation (“IDC”), virtually all enterprises’ new strategic IT investments through to 2020 will be on third platform digital transformation technologies and solutions.
In view of the market trend, by consolidating the resources and well-established networks of the two companies, strong synergies will be created, including (1) quickly establish the Group’s business as a digital business enabler; (2) rapidly capture market opportunities brought by big data analytics; (3) bring strong cross-selling opportunities in retail and financial services sector; (4) enhance operational efficiency; (5) extend our managed services business into total IT outsourcing; and (6) capture e-commerce opportunities in Mainland China.
Mr. Leon Wang, Chief Executive Officer and Executive Director of Automated Systems Holdings Limited said, “With the rapid rise of digital transformation technologies, acquiring Grid Dynamics enables ASL to embrace a new opportunity for further development. This acquisition not only demonstrates ASL’s commitment to change and innovation in technology, but also marks ASL’s enhanced capability in providing professional and high value-added services to customers, thereby grasping the tremendous business opportunity bought by digital transformation. This acquisition also helps ASL to expand its services coverage globally and bring strong synergies with ASL’s current business in terms of geographical coverage, customer base, and technology. It also allows our customer to enjoy our world-class one-stop digital transformation solution, meeting various needs of corporation in different regions. Besides, the solid financial track record of Grid Dynamics is expected to contribute significantly to the Group’s existing financial performances.”
Mr. Leonard Livschitz, Chief Executive Officer of Grid Dynamics said, “Being a part of ASL, we gain access to new markets, such as China, Hong Kong and other Asia Pacific countries, to meet the exploding demand for Grid Dynamics’ expertise and next-generation technology solutions around digital e-Commerce, big data, cloud and open source.”
Mr. Wang concluded, “2017 is ASL’s 20th Listing Anniversary. The successful acquisition lays a solid foundation for the Group’s long-term development and marks the Group’s brand new milestone. Going forward, ASL will continue to explore other business opportunities that complement the Group’s current mix of business operations in order to bring higher value to shareholders. With our excellent strategic maneuver, we are confident to build the Group as a trustworthy and professional global IT partner.”