BY Richard Summerfield
Hitachi Ltd has agreed to acquire US software company GlobalLogic Inc in a deal worth $9.6bn, including debt. The acquisition, which is being funded with cash and bank loans, is expected to close by the end of July 2021.
Hitachi, the Japanese electronics and construction giant, will acquire GlobalLogic, which was founded in 2000, from current owners Canada Pension Plan Investment Board (CPPIB) and Swiss investment firm Partners Group. CPPIB and Partners Group each hold 45 percent of the company and GlobalLogic’s management owns the remaining stake.
“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,” said Toshiaki Higashihara, president and chief executive of Hitachi. “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.”
He added: “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 sustainable society.”
“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 chief executive of 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.”
The acquisition of GlobalLogic is part of Hitachi’s 2021 plan to invest one trillion yen to strengthen the digital capabilities of its businesses.
Partners Group acquired a joint lead ownership equity stake in GlobalLogic alongside equity partner Canada Pension Plan Investment Board in 2018 at an enterprise value of $2bn.
“GlobalLogic is serving clients on the front line of the digital transition, helping them reimagine their offering, adapt their business models and change how they engage with consumers,” said Dr Marcel Erni, co-founder and member of the board of directors of Partners Group. “Digitization is one of the three investment giga themes that Partners Group is focused on that is driving change across industries worldwide. GlobalLogic is an exciting success story demonstrating how Partners Group delivers sustainable returns to our clients through transformational investing.”
News: Hitachi to buy U.S. software developer GlobalLogic for $9.6 billion