Hitachi buys US software program agency GlobalLogic for $9.6 billion – Times of India

TOKYO: Japan’s Hitachi mentioned Wednesday it’ll totally purchase US software program firm GlobalLogic in a deal value $9.6 billion because it appears to be like to develop its digital providers choices.
Hitachi pays $8.5 billion for the agency, however the associated fee shall be bumped up by the additional repayment of GlobalLogic’s excellent debt, the Japanese firm mentioned.
The buy comes with Hitachi more and more centered on tech choices, together with by its Internet of Things 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 mentioned in a press launch.
“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 corporate 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.”
With 20,000 workers in 14 international locations, GlobalLogic brings a community of design studios and software program product improvement centres in addition to tons of of shoppers.
The information, formally introduced on the shut of the buying and selling day, was earlier reported by the Nikkei monetary newspaper, and despatched Hitachi inventory plunging, ending the day down greater than seven per cent.
But Bloomberg Intelligence senior analyst Takeshi Kitaura mentioned the acquisition “makes sense” given Hitachi’s ambitions within the sector.
“The company has a client network, which will help Hitachi grow further,” he advised Bloomberg News.
The Nikkei report mentioned Hitachi’s buy was prone to be a report acquisition for a Japanese electrical tools agency.
It comes after the agency’s mammoth buyout, accomplished final 12 months, of Swiss-Swedish engineering big ABB for 704 billion yen ($6.four billion).

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