Posted by Tokyo, Japan: Hitachi said it will buy US software company GlobalLogic Inc. for $9.6 billion. GlobalLogic’s acquisition will further strengthen Hitachi’s digital offerings under its digital business unit Lumada, the company said in a statement.
“The acquisition of GlobalLogic creates an exciting new opportunity for Hitachi to expand our offerings of Lumada solutions and services. Provide values to customers in their digital transformation journey. And grow our Lumada business globally,” said Hitachi President and CEO Toshiaki Higashihara.
The buyout will create synergies across Hitachi’s five sectors. IT, Energy, Industry, Mobility and Smart Life –and automotive systems business (Hitachi Astemo).
Silicon Valley headquartered GlobalLogic have over 20,000 professionals in 14 countries with design studios and software product engineering centres globally.
It has over 400 clients across domains. That includes communications, financial services, automotive, healthcare & life sciences, technology, media and entertainment, and manufacturing.
Hitachi will leverage GlobalLogic’s “chip-to-cloud” advanced software product engineering technology, experience design skills and vertical industry expertise.
The Tokyo based company will combine GlobalLogic’s digital engineering technology, skills and industry expertise. And it will accelerate the advanced digital transformation of social infrastructure such as rail, energy and healthcare globally.
“The synergy of GlobalLogic’s leading experience design and innovation with Hitachi’s expertise in IT, operational technology and products, will help us realize our goal to be the leading digital transformation innovator in social infrastructure worldwide,” said CEO Higashihara.
“Together, we will create new social, environmental and economic value for our globally expanding client companies. And elevate QoL (quality of life) for people through contributions to realize a sustainable society,” added CEO Higashihara.
“Companies in every industry are transforming with digital technology – to better engage customers, create new revenue streams. And drive a higher quality of life,” said Shashank Samant, President and CEO, GlobalLogic.
“We have a tremendous opportunity ahead and we are excited to embark on this journey with Hitachi. Combining our collective skills, technologies and market presence to deliver greater value to our clients as they transform their businesses,” added Samant.
The deal is subject to customary conditions and regulatory approvals. It is expected to be completed by the end of July 2021, the Japanese ICT major said.
For Hitachi, the GlobalLogic buyout aligns with its strategy. Under the 2021 mid-term management plan, it had decided to make growth investments of 1 trillion Yen (approx. $9 billion) in the IT sector mainly through Hitachi Vantara – the storage solutions company.
After the GlobalLogic deal is closed, it will be an integral part of Lumada digital solutions and services portfolio.