News Release – March 8 2020
(Hong Kong, 8th March 2020) – Automated Systems Holdings Limited (“ASL” or “the Group”) (HKEX stock code: 771), a trustworthy and professional global Information Technology (“IT”) partner, is pleased to announce that Grid Dynamics Holdings, Inc. (“Grid Dynamics”), the Group’s U.S. and Europe business, has been successfully listed on NASDAQ (NASDAQ: GDYN) on 6th March (Eastern Time). Upon the completion, Grid Dynamics’ stock closed at US$12.0 on its first day of trading, with the market value amounting to US$610.0 million (approximately HK$4.78 billion), up 17.0% above its issue price. It makes for a grandiose ending to the year-long-preparation leading to Grid Dynamics’ listing.
Grid Dynamics will become an associate of the Group after listing, with ASL as its single largest shareholder, holding 38.3% of its shares. Mr. Wang Weihang, Chairman of the Board of Directors of ASL, and Mr. Leon Wang, Executive Director and Chief Executive Officer of ASL, will both be appointed as members of the new Grid Dynamics’ Board of Directors.
Mr. Leon Wang said on the listing day, “The successful listing of Grid Dynamics is a full reflection of its value. Post-investment management has always been the focus and challenge of the investment field and collaborative management operations. In the three years, from the company’s acquisition of Grid Dynamics in 2017, to its listing today, the company has implemented a new share option incentive scheme, introduced a new strategic investor from the Silicon Valley, and invested US$7.0 million to continuously promote the technological transformation of Grid Dynamics. Thanks to the unremitting efforts of Grid Dynamics’ management team, the Group’s over 3,000 employees have gathered today to celebrate this memorable day.”
The Group has achieved considerable investment returns through the listing of Grid Dynamics. Its pre-investment valuation has increased by more than three times as compared to 2017, and it has obtained a cash and stock return of approximately US$200.0 million. This will greatly improve the Group’s asset-liability structure, and acquire sufficient cash to support the development of major operating businesses, thereby coping with the current macroeconomic downward pressure, and further promoting and refining the business layout and development in the Asia-Pacific region.
Mr. Wang Weihang congratulated the management and all employees and said, “The spin-off and listing of Grid Dynamics is a great leap forward, ASL will enter into a new era with the implementation of the Group’s regional development strategy in Asia-Pacific, Europe and the United States. The Group has not only procured a delivery network and the corresponding capability covering Europe and the United States, especially for the countries along the ‘Belt and Road Initiative’, but has also established a high-end scientific and technological talent pool to match the digital transformation needs of several thousand global customers.”
As the single largest shareholder of Grid Dynamics, the Group will continue to work hand in hand with Grid Dynamics, to carry out in-depth collaborations in three aspects, namely, technical capability enhancements, complementary delivery capabilities, and customer resources sharing.
The listing opens up an exciting new chapter for Grid Dynamics, for it is bound to compete with many of the world’s top technology companies and to achieve remarkable results.
Mr. Leon Wang concluded, “Looking forward, ASL will unify software application, cybersecurity, and omni-channel managed services to enhance technical service capacity, in the form of an “as-a-Service” business model. The Group will combine its rich practical experience in the industry, to help customers attain the integration of technology and application, and to assist customers in business transformation through technological innovation, in the fields of cloud computing, big data and more. At the same time, please stay tuned to the Group’s annual solution tour, which will showcase a series of brand-new ASL branded services.”
For details of the transaction, please refer to the announcement issued by ASL on 8th March 2020.
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