News: Hitachi to acquire GlobalLogic for $9.6 BN

C-Suite

Hitachi to acquire GlobalLogic for $9.6 BN

The acquisition is part of Hitachi's ongoing business portfolio overhaul, which includes the $7 BN acquisition of ABB Ltd's power grid business last year.
Hitachi to acquire GlobalLogic for $9.6 BN

Hitachi Ltd has announced its plan to acquire US-based software company GlobalLogic Inc for $9.6 BN, including repayment of the debt.

The acquisition is part of Hitachi's ongoing business portfolio overhaul, which includes the $7 BN acquisition of ABB Ltd's power grid business last year and a series of divestitures of its domestic hardware subsidiaries.

San Jose-based GlobalLogic is currently owned 45 percent each by Canada Pension Plan Investment Board and Swiss investment firm Partners Group. The rest is owned by the company's management.

Founded in 2000, GlobalLogic has more than 20,000 employees in 14 countries and offers software engineering services to 400 active clients in industries including automotive, healthcare, and finance.

GlobalLogic's expertise stretches from chips to cloud services and will extend the range of Hitachi's own digital services business, company executives told a news conference.

Hitachi aims to close the transaction, which will be funded with cash and bank loans, by the end of July.

The conglomerate is in talks with private equity firms to sell Hitachi Metals Ltd, a deal that could fetch more than $6.4 BN, following the sale of its chemical unit and diagnostic imaging business.

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Topics: C-Suite, #MergersAndAcquisitions

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