v3.25.4
Acquisitions
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
Overview of transactions
Mobile Computing — On October 4, 2024, the Company acquired all shares of Mobile Computing S.A. (“Mobile Computing”), an Argentina-based company, for a purchase price of $16.0 million including cash paid at closing of $13.3 million and contingent consideration with an acquisition-date fair value of $2.7 million. The maximum amount of potential contingent cash consideration was $3.0 million, subject to attainment of certain revenue and gross profit metrics within 12 months. The acquisition of Mobile Computing expanded the Company’s client portfolio, strengthened its expertise in digital product co-creation and User Interface (“UI”)/User Experience (“UX”) services and significantly contributed to the “Follow-the-Sun” model to better serve clients.
JUXT — On September 26, 2024, the Company acquired 100% of a group of UK-based companies, including Headrunner Limited and Congreve Computing Ltd., with their wholly owned subsidiary JUXT Ltd. (collectively referred to as “JUXT”). The total purchase consideration was $47.0 million, consisting of cash consideration of $39.5 million paid at closing and fair value of the contingent consideration at the date of the acquisition of $7.5 million. The maximum amount of potential contingent cash consideration was $9.4 million, subject to attainment of certain revenue and gross profit metrics within 12 months. The acquisition of JUXT strengthened the Company’s go-to-market positioning in the Finance vertical and opened new opportunities across the European market.
NextSphere — On April 18, 2023, the Company completed the acquisition of 100% of NextSphere Technologies, Inc. (“NextSphere”) for a purchase consideration of $25.2 million, consisting of $24.3 million of cash paid at closing and contingent consideration with an acquisition-date fair value of $0.9 million. The maximum amount of potential contingent cash consideration was $2.0 million, subject to attainment of certain revenue and gross profit targets within 12 months. The acquisition of NextSphere added two large engineering centers in India’s tech hubs of Hyderabad and Chennai. The Company believes this acquisition supported the Company’s objectives of enhancing its technical capabilities, expanding its global footprint, and increasing its client base.
Mutual Mobile — On December 23, 2022, the Company acquired all shares of Mutual Mobile Inc. (“Mutual Mobile”) for a total purchase price of $16.1 million, consisting of cash consideration of $12.8 million paid at closing and fair value of the contingent consideration at the date of the acquisition of $3.3 million. The maximum amount of potential contingent cash consideration was $5.0 million, subject to attainment of certain revenue and gross profit metrics within 12 months. The
acquisition of Mutual Mobile accelerated the Company’s strategic expansion into the India engineering market and further solidified Grid Dynamics’ commitment to global growth.
Assets acquired and liabilities assumed
The following table summarizes the fair values of the assets acquired and liabilities assumed as updated for any changes as of December 31, 2025.
During 2025, the Company finalized the working capital adjustments for Mobile Computing that resulted in a decrease of original purchase price in the amount of $0.3 million, minor corrections of several working capital accounts with a corresponding net change in goodwill of $0.4 million. The Company then finalized the fair value of the assets acquired and liabilities assumed in the acquisition of Mobile Computing.
During 2025, the Company finalized the working capital adjustment for JUXT that resulted in a decrease of original purchase price in the amount of $0.2 million with a corresponding net change in goodwill. The Company then finalized the fair value of the assets acquired and liabilities assumed in the acquisition of JUXT.
Fair values of assets acquired and liabilities assumed as a result of NextSphere and Mutual Mobile acquisitions were finalized during the fourth quarter of 2023.
Mobile ComputingJUXTNextSphereMutual Mobile
(in thousands)
Cash, cash equivalents and restricted cash
$2,330 $7,344 $6,449 $3,528 
Trade receivables(1)
1,496 7,132 2,639 914 
Prepaid expenses and other current assets390 273 620 540 
Intangible assets8,740 18,870 9,906 3,749 
Goodwill(2)-(5)
7,192 23,164 9,031 8,879 
Property and equipment, and other noncurrent assets
450 231 703 234 
Total assets acquired$20,598 $57,014 $29,348 $17,844 
Accounts payable, accrued expenses, and other current liabilities
$(1,836)$(5,491)$(1,990)$(1,576)
Deferred taxes(3,051)(4,753)(2,427)(686)
Other noncurrent liabilities
(59)— — — 
Total liabilities assumed$(4,946)$(10,244)$(4,417)$(2,262)
Purchase price allocation$15,652 $46,770 $24,931 $15,582 
_________________________
(1)The estimated fair values of trade receivables equaled their gross contractual amounts due as of the acquisition dates, all of which were collected by the Company as of December 31, 2024 and December 31, 2023, respectively.
(2)The goodwill recognized as a result of the Mobile Computing is primarily attributed to the value the Company expects to achieve through growth opportunities in Latin America as well as the assembled workforce acquired. The goodwill is not deductible for income tax purposes.
(3)The goodwill recognized as a result of the JUXT acquisition is primarily attributed to synergies expected to be achieved by expanding the Company’s ability to serve customers in Europe and the assembled workforce acquired. The goodwill is not deductible for income tax purposes.
(4)The goodwill recognized as a result of the NextSphere acquisition represents the value the Company expects to achieve through the implementation of operational synergies and growth opportunities as the Company expands its global reach as well as the assembled workforce acquired. The goodwill is not deductible for income tax purposes.
(5)The goodwill recognized as a result of the Mutual Mobile acquisition is primarily attributed to synergies expected to be achieved by combining the businesses of the Company and Mutual Mobile, expected future contracts, the assembled workforce acquired and other factors. The goodwill is not deductible for income tax purposes.
The estimated fair value, useful lives and amortization methods of identifiable intangible assets as of the date of acquisition updated for any changes during the year ended December 31, 2025 are as follows:
Mobile ComputingJUXTNextSphereMutual Mobile
Fair ValueUseful LifeFair ValueUseful LifeFair ValueUseful LifeFair ValueUseful Life
(values in thousands)
Customer relationships$8,362 8 years$17,568 8 years$8,415 10 years$3,453 8 years
Acquired software— — 995 2.5 years— 
Trade name378 2 years1,302 2.5 years496 2 years152 4 years
Non-compete agreements— — — 144 2 years
Total identified intangible assets$8,740 $18,870 $9,906 $3,749 
Effect on operating results
During the years ended December 31, 2025, 2024, and 2023, the Company incurred $0.3 million, $2.4 million and $1.0 million, respectively, of transaction-related costs, that were included in General and administrative costs in the consolidated statements of income/(loss).
Revenues generated by above-mentioned acquired companies during the period of one year starting from the acquisition date and included in the consolidated statements of income/(loss) totaled $39.0 million, $16.1 million and $15.3 million during the years ended December 31, 2025, 2024, and 2023, respectively.
These unaudited pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisition of Mobile Computing and JUXT occurred on the assumed date, nor are they necessarily an indication of future operating results.
For the years ended
December 31
20242023
(in thousands)
Revenues
$380,768 $349,038 
Net income$5,391 $1,021