Japanese industrial, construction and electronic conglomerate Hitachi Ltd
TOKYO — Hitachi Ltd. is buying U.S. digital technology services company GlobalLogic Inc. for $9.6 billion, the Japanese industrial, construction and electronic conglomerate said Wednesday.
Tokyo-based Hitachi reported the purchase of the Silicon Valley company will strengthen Hitachi’s digital operations within a wide range of companies, including IT, energy, industry and mobility. It will speed up efforts in the”digital transformation” of railways, power and health care systems that are core Hitachi companies, it said.
GlobalLogic has over 20,000 professionals in 14 nations, operating design studios and software product technology facilities, with earnings expected to reach roughly $1.2 billion for fiscal 2021.
“Together we will create new social, environmental and economic value for our worldwide expanding customer businesses and elevate QoL, or quality of lifestyle, for individuals through contributions to attain sustainable society,” explained Hitachi Chief Executive Toshiaki Higashihara.
Hitachi stocks dropped 7.3percent in Tokyo trading.
The agreement had been expected to close by the end of July, subject to regulatory approval.
Companies around the globe are working to adapt to the fast digital changes happening in various industries.
The acquisition of GlobalLogic is a part of Hitachi’s 2021 advertising program, which contains a commitment to invest 1 trillion yen ($9 billion) to strengthen the digital capabilities of the organization’s sprawling businesses.