Japan's Hitachi acquires GlobalLogic for $9.6 billion
Japanese industrial, electronic and construction conglomerate Hitachi Ltd
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Hitachi Ltd. is buying U.S. digital engineering services company GlobalLogic Inc. for $9.6 billion, the Japanese industrial, electronic and construction conglomerate said Wednesday.
Tokyo-based Hitachi said the acquisition of the Silicon Valley company will strengthen Hitachi’s digital operations in a wide range of businesses, including IT, energy, industry and mobility. It will speed up efforts in the “digital transformation” of railways, energy and health care systems that are core Hitachi businesses, it said.
GlobalLogic has more than 20,000 professionals in 14 countries, operating design studios and software product engineering centers, with revenue expected to reach about $1.2 billion for fiscal 2021.
“Together we will create new social, environmental and economic value for our globally expanding client companies and elevate QoL, or quality of life, for people through contributions to realize sustainable society,” said Hitachi Chief Executive Toshiaki Higashihara.
Hitachi shares plunged 7.3% in Tokyo trading.
The deal was expected to close by the end of July, subject to regulatory approval.
Companies around the world are working to adapt to the rapidly digital changes going on in various industries.
The acquisition of GlobalLogic is part of Hitachi's 2021 mid-term plan, which includes a commitment to invest 1 trillion yen ($9 billion) to strengthen the digital capabilities of the company’s sprawling businesses.
___
Yuri Kageyama is on Twitter https://twitter.com/yurikageyama