fbpx

Luxoft Acquires US-based Digital Innovation Agency, Smashing Ideas

Luxoft Holding, Inc (NYSE:LXFT), a global IT service provider,
today announced the acquisition of Smashing
Ideas, a Seattle-based design and innovation agency.

Smashing Ideas consults across the product design and development
lifecycle, with a focus on accelerating innovation at every stage for
their Global 500 clients. Their approach and depth of experience in
strategy, design, development, and program management fosters
collaboration and enables them to bring new products, services, and
businesses to market, faster.

Luxoft purchased Smashing Ideas from Penguin Random House, the world’s
largest trade-book publisher, which has owned the company since 2011.

This acquisition bolsters Luxoft’s digital research, strategy, and
design capabilities, and illustrates its ongoing commitment to provide
valuable expertise to its global clients. It comes at a pivotal time in
the industry, when ongoing collaboration among technology, design, and
strategy is critical to delivering products as companies look to enhance
their user experience, improve their results and ensure market share
gains.

The acquisition expands the range of services both companies can
provide, creating a unique market position that accelerates clients
through all phases of their lifecycle. The increased depth of
capabilities is intended to positively impact each of Luxoft’s lines of
business: Digital Enterprise, Financial Services and Automotive, with
Smashing Ideas supporting Luxoft’s horizontal digital transformation
practice, Luxoft Digital.

“Our commitment to helping revolutionize the technology offerings of our
clients is more evident than ever with our acquisition of Smashing
Ideas,” said
Dmitry Loschinin, CEO and President of Luxoft. “Luxoft prides
itself on being a value-added provider that is focused on technical
strategy and implementation. This move further extends our capabilities
into design and business strategy, allowing us to provide even more
value to our strategic client partners.”

Smashing Ideas CEO, Brian Burke, added, “By joining Luxoft, we
are well-positioned to advance our clients’ most ambitious initiatives
across the innovation lifecycle. Luxoft’s worldwide presence enables us
to collaborate across time zones to service global clients via a
multitude of delivery centers. This allows us to bring products to
market faster, while Luxoft’s deep technical expertise in blockchain,
IoT, and machine learning amplifies the enterprise scale we can provide.
Together, we look forward to being a true innovation partner to our
clients’ organizations.”

“Penguin Random House and Smashing Ideas have enjoyed a long and
productive working relationship. While we have continued to work
together on several exciting digital product experiences, we believe
that moving forward, Smashing Ideas, and its exceptionally talented
strategists, designers, developers and program managers, will be best
served by an owner that can contribute more synergies and added
value for shared clients. We believe Smashing Ideas and Luxoft are a
perfect fit, and we wish them enormous success together,” said Nina
von Moltke, President, Director of Strategic Development, Penguin Random
House U.S..

GP Bullhound acted as the exclusive financial advisor to Penguin Random
House and Smashing Ideas on this transaction.

About Luxoft

Luxoft (NYSE:LXFT) is a global IT service provider of innovative
technology solutions that delivers measurable business outcomes to
multinational companies. Its offerings encompass strategic consulting,
custom software development services, and digital solution engineering.
Luxoft enables companies to compete by leveraging its multi-industry
expertise in the financial services, automotive, communications, and
healthcare & life sciences sectors. Its managed delivery model is
underpinned by a highly-educated workforce, allowing the Company to
continuously innovate upwards on the technology stack to meet evolving
digital challenges.

Luxoft has more than 12,900 staff across 42 cities in 21 countries
within five continents, with its operating headquarters office in Zug,
Switzerland. For more information, please visit www.luxoft.com.

About Smashing Ideas

Founded in 1996 and headquartered in Seattle, WA, Smashing Ideas is a
design and innovation agency with deep expertise in creating highly
engaging digital experiences. They partner with the Global 500 to create
connected smart products, apps, websites, and content management systems
that make a positive impact on user engagement and their clients’ bottom
line. From business strategy and service design to UX, visual design,
and development, their trademarked process, Motivational UX™,
accelerates digital transformation and increases user engagement. Their
unique service offerings, which include lean strategy, digital product
and service design, product realization, managed services, and data
science and analytics, has resulted in 60+ awards and a Fortune 500
client list spanning manufacturing, mobility, health, entertainment, and
retail.

Forward-Looking Statements

This news release of Luxoft Holding, Inc (“Luxoft”) contains
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the Securities
Act of 1933, and Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements include information about possible or
assumed future results of our business and financial condition, as well
as the results of operations, liquidity, plans and objectives. In some
cases, you can identify forward-looking statements by terminology such
as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,”
“should,” “plan,” “expect,” “predict,” “potential,” or the negative of
these terms or other similar expressions. These statements are subject
to, without limitation, the risk factors discussed under the heading
“Risk Factors” in Luxoft’s Annual Report on Form 20-F and other
documents filed with or furnished to the Securities and Exchange
Commission by Luxoft. Except as required by law, Luxoft undertakes no
obligation to publicly update any forward-looking statements for any
reason after the date of this news release whether as a result of new
information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180618005515/en/