Hitachi to buy GlobalLogic for $9.6 bn as part of digital focus

Hitachi has agreed to buy US-based software company GlobalLogic for $9.6 billion, as the Japanese industrial conglomerate aims to expand from electronics hardware to digital services.
GlobalLogic product engineering
The acquisition is part of Hitachi’s business portfolio overhaul, which includes the $7 billion acquisition of ABB’s power grid business last year and a series of divestitures of its domestic hardware subsidiaries.

San Jose-based GlobalLogic is 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.

GlobalLogic has more than 20,000 employees in 14 countries and 400 active clients in various industries including automotive, healthcare, technology.

Hitachi is aiming to close the transaction by the end of July.

Hitachi is in talks with private equity firms to sell Hitachi Metals for more than $6.4 billion, following the sale of its chemical unit and diagnostic imaging business.