In a major push to its digital transformation initiatives, diversified Japanese conglomerate Hitachi will acquire San Jose, California headquartered software development firm GlobalLogic for a consideration of $9.6 billion.
The deal, which remains subject to customary conditions and regulatory approvals, is expected to close by July 2021.
The deal, according to a statement, will equip Hitachi with GlobalLogic’s advanced digital engineering capabilities and strengthen the company’s Lumada portfolio of digital solutions and services.
Driven by US-based Hitachi Vantara LLC globally, the products under Lumada derive valuable insights from customers’ data and enable the digital transformation of social infrastructures such as rail, energy, and healthcare.
“The acquisition of GlobalLogic creates an exciting new opportunity for Hitachi to expand our offerings of Lumada solutions and services, provide value to customers in their digital transformation journey, and grow our Lumada business globally,” Toshiaki Higashihara, president and CEO of Hitachi, said in a statement announcing the deal.
“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. 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,” he added.
As part of the acquisition, the Tokyo headquartered company will also rope in GlobalLogic’s 400-plus clients, including some major technology, manufacturing, and financial services companies.
Commenting on the acquisition, Shashank Samant, president and CEO at GlobalLogic, said, “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.”
Founded in 2000 by four IIT alumnus, GlobalLogic offers a variety of software development services, including full-lifecycle product development, user experience design, product design, content engineering, product research & ideation, sustaining engineering, product engineering, product testing & quality assurance, and product re-platforming.
The firm employs over 20,000 people in 14 countries -- with over half of the workforce working out of offices based in Noida, Hyderabad, Bengaluru and Chennai -- and is expected to touch $1.2 billion in revenue for the financial year 2021.