Grid Dynamics Expands Capabilities in the Americas with Acquisition of Argentina-Based Mobile Computing, Strengthening Expertise in Manufacturing, CPG, and Financial Services

Rhea-AI Summary

Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) has acquired Mobile Computing S.A., a software development services provider based in Buenos Aires, Argentina. This strategic move enhances Grid Dynamics' delivery capabilities in the Americas and strengthens its follow-the-sun delivery model. Mobile Computing, founded in 1998, is known for its expertise in digital transformation, particularly in the manufacturing, CPG, and financial services industries.

The acquisition brings several benefits to Grid Dynamics, including:

• Expanded client portfolio with blue-chip companies
• Enhanced capabilities in application development and UI/UX services
• A skilled team with a reputation for delivery excellence
• Support for Grid Dynamics' GigaCube growth strategy

This move aligns with Grid Dynamics' commitment to providing engineering excellence for its global enterprise clients and expands its service offerings in the Americas.

Positive

• Acquisition expands Grid Dynamics' global footprint and enhances follow-the-sun delivery model
• Adds skilled team with expertise in digital product co-creation and UI/UX services
• Expands client portfolio with leading companies in manufacturing, CPG, and financial services industries
• Strengthens Grid Dynamics' presence in the Americas (Argentina, complementing US and Mexico)
• Supports GigaCube growth strategy by offering expanded service capabilities and deeper industry expertise

Negative

• None.

Insights

Financial Analyst

The acquisition of Mobile Computing by Grid Dynamics (NASDAQ: GDYN) is a strategic move that strengthens the company's position in the Americas and expands its service capabilities. This deal aligns with Grid Dynamics' GigaCube growth strategy and enhances its follow-the-sun delivery model. The addition of Mobile Computing's expertise in manufacturing, CPG and financial services sectors diversifies GDYN's client portfolio and industry reach. While financial terms weren't disclosed, the acquisition of a company with high Net Promoter Scores and long-lasting relationships with blue-chip clients suggests potential for revenue growth and margin improvement. The expanded geographical presence in Argentina complements GDYN's existing operations in the US and Mexico, potentially leading to operational efficiencies and improved service delivery. Investors should monitor for synergies, cross-selling opportunities and any impact on GDYN's financial performance in upcoming quarters.

Tech Industry Expert

Grid Dynamics' acquisition of Mobile Computing is a savvy move in the competitive tech consulting and digital services landscape. By integrating Mobile Computing's expertise in digital product co-creation and UI/UX services, GDYN is positioning itself to capture more value in the high-growth areas of digital transformation. The expanded capabilities in application development and user experience design are important for serving enterprise clients undergoing digital overhauls. This acquisition also addresses the ongoing talent crunch in the tech industry by bringing in a skilled team from Argentina, potentially at a lower cost base than US-based talent. The follow-the-sun model enhancement is particularly valuable for global enterprises requiring round-the-clock support and development services. As digital transformation initiatives continue to accelerate across industries, GDYN's expanded service offerings and geographical reach should strengthen its competitive position and ability to win larger, more complex projects.

Key Takeaways:

• Mobile Computing’s presence in Buenos Aires strengthens Grid Dynamics’ follow-the-sun delivery model to better serve its enterprise clients.
• The acquisition expands Grid Dynamics’ client portfolio, adding leading companies from the manufacturing, CPG, and financial services industries.
• Grid Dynamics gains a skilled team known for delivery excellence in digital product co-creation and UI/UX services.

SAN RAMON, Calif.--(BUSINESS WIRE)-- Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) (Grid Dynamics), a leading provider of technology consulting, platform and product engineering, AI, and digital engagement services, today announces its acquisition of Mobile Computing S.A., a highly regarded software development services provider based in Buenos Aires, Argentina. This strategic acquisition enhances Grid Dynamics’ delivery capabilities in the Americas and reinforces its commitment to providing engineering excellence for its global enterprise clients.

Founded in 1998, Mobile Computing is recognized as a leader in digital transformation, offering a comprehensive suite of solutions spanning industries including manufacturing, CPG, and financial services. The company has developed long-lasting relationships with blue-chip clients, and is known for high-quality application development and UI/UX services. Mobile Computing has high Net Promoter Scores (NPS), reflecting its reputation for delivery excellence and client satisfaction.

“Mobile Computing has a strong reputation as a trusted provider of top-tier engineering services, and I am extremely proud to welcome this high-performing team of professionals into our company. The acquisition of Mobile Computing expands Grid Dynamics’ global footprint and significantly enhances our follow-the-sun delivery model. By adding this talented team in Argentina, our clients now have expanded options in the Americas, complementing our established presence in the United States and Mexico. This acquisition also supports Grid Dynamics’ GigaCube growth strategy by offering our global enterprise clients expanded service capabilities and deeper industry expertise,” said Leonard Livschitz, CEO of Grid Dynamics.

Ignacio Garassino and Sebastian Wainztein, Co-CEOs of Mobile Computing, expressed the significance of the acquisition in a joint statement, noting, “Joining forces with Grid Dynamics is an exciting next step for our company. We’ve built a strong reputation for delivering top-tier digital solutions and, by becoming part of Grid Dynamics, we can offer clients a broader range of services to enable their digital transformation on a global scale.”

About Grid Dynamics

Grid Dynamics (NASDAQ: GDYN) is a leading provider of technology consulting, platform and product engineering, AI, and digital engagement services. Fusing technical vision with business acumen, we solve the most pressing technical challenges and enable positive business outcomes for enterprise companies undergoing business transformation. A key differentiator for Grid Dynamics is our 8 years of experience and leadership in enterprise AI, supported by profound expertise and ongoing investment in data, analytics, application modernization, cloud & DevOps, and customer experience. Founded in 2006, Grid Dynamics is headquartered in Silicon Valley with offices across the Americas, Europe, and India. Follow us on LinkedIn.

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts, and involve risks and uncertainties that could cause actual results of Grid Dynamics to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include, without limitation, quotations and statements regarding the expected benefits of the Mobile Computing acquisition, our product capabilities, and our company’s future growth including with customers and GigaCube strategy.

These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside Grid Dynamics’ control and are difficult to predict. Factors that may cause such differences include, but are not limited to our ability to achieve its expected benefits, as well as any factors limiting our product capabilities, the benefits of our products, and our company’s growth strategy.

Grid Dynamics cautions that the foregoing list of factors is not exclusive. Grid Dynamics cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Grid Dynamics does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Further information about factors that could materially affect Grid Dynamics, including its results of operations and financial condition, is set forth under the “Risk Factors” section of the Company’s quarterly report on Form 10-Q filed August 1, 2024, and in other periodic filings Grid Dynamics makes with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241007127136/en/

Media Contact:

Cary Savas

+1 (650) 523 5000

csavas@griddynamics.com

Source: Grid Dynamics Holdings, Inc.

FAQ

What company did Grid Dynamics (GDYN) acquire?

Grid Dynamics acquired Mobile Computing S.A., a software development services provider based in Buenos Aires, Argentina.

How does the acquisition of Mobile Computing benefit Grid Dynamics (GDYN)?

The acquisition enhances Grid Dynamics' delivery capabilities in the Americas, expands its client portfolio, adds expertise in manufacturing, CPG, and financial services industries, and strengthens its follow-the-sun delivery model.

What industries does Mobile Computing specialize in?

Mobile Computing specializes in providing digital transformation solutions for the manufacturing, CPG (Consumer Packaged Goods), and financial services industries.

How does the acquisition of Mobile Computing align with Grid Dynamics' (GDYN) growth strategy?

The acquisition supports Grid Dynamics' GigaCube growth strategy by offering expanded service capabilities, deeper industry expertise, and enhancing its global footprint to better serve enterprise clients.