On the last check Tuesday, shares of the enterprise-level digital transformation leader, Grid Dynamics Holdings Inc. (GDYN) were down -7.69 percent at $16.20 in after-hours trading. The stock of Grid Dynamics fell -2.72 percent to $17.55 at the end of the regular session. The stock of GDYN traded in a range of $17.51 to $18.29.

The volume of GDYN stock traded was 0.13 million shares, which was lower than the daily average of 0.16 million shares for the previous 100 days. In the previous five days, GDYN stock has fallen -4.52 percent, but has gained 14.18 percent in the last month. Following the commencement of a public offering, the GDYN stock plunged.

What does GDYN have to offer?

Grid Dynamics is a digital-first technology services company that helps Fortune 1000 organisations expand faster and gain a competitive advantage. In omnichannel customer experience, big data analytics, search, artificial intelligence, cloud migration, and application modernization, GDYN delivers digital transformation consultation and implementation services.

Grid Dynamics uses technological accelerators, an agile delivery culture, and a pool of global technical talent to achieve high speed-to-market, quality, and efficiency. GDYN is based in Silicon Valley and has offices throughout the United States, the United Kingdom, the Netherlands, Mexico, Central and Eastern Europe.

Grid Dynamics announced the start of an underwritten follow-on public offering of 10,100,262 shares of common stock yesterday.

• Grid Dynamics will offer 4,000,000 shares, while certain selling stockholders will offer 6,100,262 shares in GDYN’s offering.
• The selling investors will not get any proceeds from the sale of their shares to GDYN.
• GDYN and some selling investors also plan to provide the underwriters a 30-day option to buy up to 1,515,039 additional shares of common stock.
• For GDYN’s offering, JP Morgan Securities, LLC, William Blair & Company, LLC, and Cowen and Company, LLC are acting as joint book-running managers.

Acquisition strategy:

Tacit Knowledge, a Pitney Bowes subsidiary and premier provider of end-to-end digital commerce solutions for global companies, was purchased by Grid Dynamics last month. Tacit Knowledge, a global provider of digital commerce solutions, was founded in 2002 and serves customers in the United Kingdom, North America, Continental Europe, and Asia.

Its major clients include Visa, LVMH, and Shimano, and it serves prominent worldwide brands in the technology, CPG, financial, and retail industries. The whole team of over 180 workers from the UK, Mexico, Moldova, and the United States, including senior management, will join GDYN as part of the purchase.

How will this transaction affect GDYN?

The locations of Tacit Knowledge and Grid Dynamics (GDYN) are very complementary, allowing GDYN to expand its capabilities and service to additional clients from nearshore sites. GDYN’s available cash reserves were used to fund the transaction.