Hitachi Ltd said on Wednesday it will buy U.S. software company GlobalLogic Inc for $9.6 billion, as the Japanese industrial conglomerate aims to expand from electronics hardware to digital services.
The acquisition is part of Hitachi’s ongoing business portfolio overhaul, which includes the $7 billion acquisition of ABB Ltd’s power grid business last year and a series of divestitures of its domestic hardware subsidiaries.
The news sent Hitachi’s stock down more than 7% at one point on the Tokyo Stock Exchange.
San Jose-based GlobalLogic is currently owned 45% 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 400 active clients in various industries including automotive, healthcare, technology, according to its websites.
Hitachi is aiming to close the transaction by the end of July.
Hitachi is in talks with private equity firms to sell Hitachi Metals Ltd, a deal that could fetch more than $6.4 billion, following the sale of its chemical unit and diagnostic imaging business.
Reporting by Makiko Yamazaki; Editing by Kim Coghill
Source: Reuters