Hitachi buys GlobalLogic for $9.6 Billion to boost Digital Transformation Capabilities

Hitachi will now acquire the California headquartered software development firm GlobalLogic for $9.6 billion.

GlobalLogic was founded in 2000. It provides a wide range of software development services, which includes full life cycle product development, product design, user experience design, content engineering, sustaining engineering, product research & ideation, product testing, product re-platforming, and quality assurance.

Toshiaki Higashihara, President & CEO of Hitachi, said, "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. 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."

Shashank Samant, President, and CEO, GlobalLogic, said, "Companies in every industry are transforming with digital technology – to better engage customers, create new revenue streams and drive a higher quality of life. 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 deal, which remains subject to customary conditions and all regulatory approvals, is expected to close by July 2021.

The deal will equip Hitachi with advanced digital engineering capabilities and strengthen the company Lumada portfolio of digital services and solutions.

Hitachi Vantara, the products under the Lumada derive valuable insights from customers' data and enable the digital transformation of social infrastructures such as energy, rail, and healthcare.

As a part of the acquisition deal, Hitachi will also rope in GlobalLogic’s 400+ customers, which includes some major manufacturing, technology, and financial services companies, notes the announcement.