Russia’s VTB Capital Asset Management claims to have made a 1,600% return on investment (“up to 15 times”) as a result of the recent acquisition of Grid Dynamics, a provider of advanced software development services, by China’s Automated Systems Holdings Limited (ASL).
Launched in 2006, Grid Dynamics has asserted itself as a major international provider of technology solutions based on Big Data, cloud and open source technologies in the retail, fintech and other tech sectors.
The company has offices in Silicon Valley, Russia, Ukraine, and Poland. The company employs no less than 400 specialists in Russia alone, according to VTB Capital Asset Management.
The acquisition, for an amount of $128 million, was completed in April 2017. The Russian fund held a 22.4% stake in the acquired company.
Access to new markets
“As a part of the ASL/Teamsun family, we gain access to new markets — such as China, Hong Kong, and other Asia-Pacific countries, as well as Europe — to meet the exploding demand for Grid Dynamics’ expertise and next-generation technology solutions around digital e-commerce, Big Data, cloud and open source,” stated Leonard Livschitz, CEO of Grid Dynamics, commenting on the acquisition.
“On top of that, we can jointly pursue emerging opportunities, such as connected cars and IoT in traditional industries, like manufacturing and automotive,” he added.
On its side, ASL expects to receive a better access to the US market.
ASL is a subsidiary of Beijing Teamsun Technology Co. (Teamsun), one of China’s biggest IT service providers. The companies are listed on the Hong Kong and Shanghai stock exchanges, respectively.
Backed by VTB Group, a major financial group, and RVC, Russia’s fund of funds for innovation — both controlled by the Russian government, — VTB Capital Asset Management was launched in 2008. As of March 31, 2017, the fund’s assets under management amounted to some 400 billion rubles ($7.08 billion).
