TOKYO (AFP) – Japan’s Hitachi said yesterday it will fully acquire United States (US) software company GlobalLogic in a deal worth USD9.6 billion as it looks to expand its digital services offerings.
Hitachi will pay USD8.5 billion for the firm, but the cost will be bumped up by the additional repayment of GlobalLogic’s outstanding debt, the Japanese company said.
The purchase comes with Hitachi increasingly focused on tech offerings, including through its Internet of Things (IoT) unit Lumada.
“Through the acquisition, Hitachi expects the addition of GlobalLogic’s advanced digital engineering capabilities, and its solid client base including major technology companies, to strengthen the digital portfolio of Lumada,” Hitachi said in a press release.
“Digital transformation continues to be a priority for organisations everywhere, and the COVID-19 pandemic has only expanded demand for new data-driven business models, customer experiences, and connected ecosystems,” the company added.
“Against this backdrop, the demand for GlobalLogic’s services is growing rapidly, and the combined company has greater access to this massive market opportunity.”