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SAN RAMON, Calif. - Grid Dynamics Holdings, Inc. (NASDAQ: NASDAQ:GDYN), known for its technology consulting and engineering services, has announced the acquisition of Buenos Aires-based Mobile Computing S.A., augmenting its delivery capabilities across the Americas. The strategic move, unveiled today, aims to bolster Grid Dynamics' follow-the-sun delivery model and expand its client portfolio in key industries.
Mobile Computing, established in 1998, is lauded for its digital transformation solutions, serving sectors such as manufacturing, consumer packaged goods (CPG), and financial services. The company's high Net Promoter Scores (NPS) underline its commitment to quality and client satisfaction.
Leonard Livschitz, CEO of Grid Dynamics, expressed pride in integrating Mobile Computing's team, emphasizing the enhancement of the company's global footprint and service offerings. The acquisition is aligned with Grid Dynamics' GigaCube growth strategy, which seeks to provide clients with comprehensive service capabilities and deeper industry expertise.
Co-CEOs of Mobile Computing, Ignacio Garassino and Sebastian Wainztein, welcomed the acquisition as an opportunity to deliver a broader range of services and support digital transformation efforts on a global scale.
Grid Dynamics, headquartered in Silicon Valley since 2006, distinguishes itself through its expertise in enterprise AI and a suite of services including AI, digital engagement, and platform engineering. The company's offices span the Americas, Europe, and India.
While the acquisition is poised to enhance Grid Dynamics' service delivery and client base, the company's forward-looking statements caution stakeholders about potential risks and uncertainties that could impact actual results, advising against undue reliance on these projections.
This expansion reflects Grid Dynamics' commitment to engineering excellence and client service, as it integrates a skilled team from Mobile Computing into its operations. The information regarding this acquisition is based on a press release statement from Grid Dynamics Holdings, Inc.
In other recent news, Grid Dynamics has made significant strides in its growth strategy. The company recently announced the acquisition of JUXT, a UK-based software engineering firm specializing in the financial sector. This strategic move is expected to strengthen Grid Dynamics' presence in the financial services industry and contribute to an anticipated annual performance increase, as noted by analysts from TD Cowen.
Grid Dynamics has also posted record-breaking results for the second quarter of 2024, surpassing both revenue and non-GAAP EBITDA forecasts. This achievement was driven by growth in the retail and finance sectors, and an expanded customer base. The company's robust cash position of approximately $250 million is facilitating the exploration of further M&A opportunities.
In terms of workforce, Grid Dynamics reported a significant increase in its number of billable engineers, reaching a total headcount of 3,961 employees. However, a decline in revenue from the TMT and CPG/manufacturing sectors was reported. Despite this, the company's focus on enhancing AI capabilities has earned it recognition with four industry awards. For the third quarter, Grid Dynamics expects revenues to fall between $84 million and $86 million. These are some of the recent developments that have shaped Grid Dynamics' trajectory.
InvestingPro Insights
Grid Dynamics' acquisition of Mobile Computing aligns well with its growth strategy and financial position. According to InvestingPro data, the company's market capitalization stands at $1.08 billion, reflecting its significant presence in the technology consulting sector.
An InvestingPro Tip highlights that Grid Dynamics holds more cash than debt on its balance sheet, suggesting a strong financial foundation to support acquisitions like Mobile Computing. This solid financial footing is further reinforced by another InvestingPro Tip indicating that the company's liquid assets exceed short-term obligations, providing flexibility for strategic moves.
The acquisition is timely, as Grid Dynamics has shown impressive stock performance. InvestingPro data reveals a strong 36.74% return over the last three months, with the stock trading near its 52-week high at 96.12% of that peak. This positive momentum could be attributed to investor confidence in the company's expansion strategies.
While Grid Dynamics is not currently profitable over the last twelve months, analysts are optimistic about its future. An InvestingPro Tip notes that net income is expected to grow this year, and analysts predict the company will be profitable this year. This positive outlook aligns with the company's strategic acquisitions and expansion efforts.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and data points to further evaluate Grid Dynamics' financial health and growth prospects.
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