VTB Capital Asset Management successfully completes the transaction for the implementation of the Grid Dynamics project
VTB Capital Asset Management successfully completed the sale of the Grid Dynamics project, which is in the venture Fund of the ZPIF of long-term direct investments of VTB — Portfolio Investments. The fund of more than 3 billion rubles was launched in 2008 with the involvement of the capital of VTB Group and JSC Russian Venture Company.
The buyer of the share and shares of other shareholders of the Fund was the Chinese diversified IT company Automated Systems Holdings Limited (ASL), according to a press release received by Planet Today.
The total amount of the sale of Grid Dynamics amounted to more than $ 128 million, the Fund’s share in the transaction is 22.4%. Return on the Fund’s investment will exceed the original invested capital by up to 15 times.
Vladimir Potapov, the Chairman of the Board of Directors of VTB Capital Asset Management, said:
"The project can be called a classic example of effective venture capital investment, which can ensure the profitability of the entire portfolio. Grid Dynamics is now the leading provider of scalable IT solutions in the areas of Big Data, the company employs over 400 professionals from Russia. I am confident that in the future it will continue to create jobs, developing the innovative sector of the country’s economy. The performance indicators, with which the Fund’s share in this project was implemented, is another confirmation of the great professionalism of our team."
Grid Dynamics is a leading developer of cloud applications for highly-loaded distributed systems in the field of e-commerce, finance and other B2C-segments. Customers are the companies of the Fortune 500 list.
It is expected that the transaction will bring mutual synergies. ASL will gain access to the US market, and Grid Dynamics will be able to enter the markets of Southeast Asian countries, including China and Hong Kong.
Mikhail Fedotov, Deputy General Director of RVC, said:
"Attraction of international investors is a prerequisite for the development of the national venture market, and we are happy to record positive dynamics in this direction. Over the past month, this is the second major transaction for the acquisition by the Chinese investor of a portfolio company of RVC funds."
Magomed Askhabov, the head of VTB Capital Venture Capital Asset Management, commented:
"This transaction is the largest and most successful in the history of VTB Capital’s venture business at the moment. Transactions like this one create a reputation for the management team. It is important to note the role of the founders and the team of Grid Dynamics. Largely due to their efforts, it was possible to build a bright and successful enterprise in the highly competitive US market, which attracted the interest of a number of large international strategic investors."