Japanese tech giant Hitachi, Ltd. (TSE: 6501) is to acquire GlobalLogic Inc., a U.S.-based digital engineering services company.
The acquisition is based on the definitive agreement among Hitachi Global Digital Holdings Corporation, a U.S. subsidiary, an SPC established by HGDH for the acquisition and GlobalLogic Worldwide Holdings, Inc., the parent company of GlobalLogic. The transaction is subject to customary conditions and regulatory approvals and expected to be completed by the end of July 2021. The two companies have agreed on an equity value of 8.5 billion U.S. dollars (approx. 918.0 billion yen) with an enterprise value of 9.5 billion U.S. dollars (approx. 1,026.0 billion yen).
The acquisition will create synergies across Hitachi’s five sectors – IT, Energy, Industry, Mobility and Smart Life – and automotive systems business (Hitachi Astemo) by accelerating the advanced digital transformation of social infrastructure such as rail, energy, and healthcare at a global scale. Through its Social Innovation Business delivered by collaborative creation with customers, Hitachi aims to increase social, environmental, and economic value for its customers and realize a sustainable society.
Led by President and CEO Shashank Samant, GlobalLogic is a company operating in the fast-growing digital engineering services market. With over 20,000 professionals in 14 countries, GlobalLogic operates design studios and software product engineering centers around the world with deep “chip-to-cloud” advanced software product engineering technology as well as experience design skills and vertical industry expertise. By combining these capabilities, the company allows clients to drive new revenue streams and incremental value for their customers by designing and developing innovative software that powers products, platforms, and digital experiences. The company has a client base with over 400 clients comprised of market leaders and marquee brands spanning key industries such as communications, financial services, automotive, healthcare & life sciences, technology, media and entertainment, and manufacturing.
GlobalLogic’s revenues are expected to reach approx. 1.2 billion U.S. dollars in fiscal 2021.