Deals

Hitachi to Buy Software Firm GlobalLogic for $8.5 Billion

If completed, deal will be one of the largest ever for Hitachi
GlobalLogic’s client network can help Hitachi grow further: BI

WATCH: Gajen Kandiah, CEO of Hitachi Vantara, the digital infrastructure business of the conglomerate, and Shashank Samant, CEO of GlobalLogic, discuss the deal.(Source: Bloomberg)

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By Shiyin Chen and Takahiko Hyuga

March 31, 2021 at 4:12 AM UTC

Updated on

March 31, 2021 at 7:00 PM UTC

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Hitachi Ltd. will pay $8.5 billion for U.S. software development company GlobalLogic Inc., a move that could help the Japanese firm expand its technology services business.

The size of the deal will increase to $9.6 billion when debt is included, Hitachi said in a statement Wednesday. The acquisition -- targeted for completion by end-July -- will be one of the largest ever for Hitachi, a storied Japanese name that grew out of electronics into a railway to electrical equipment conglomerate that’s begun investing in providing gear for the so-called internet of things. Its shares closed down 7.3% in Tokyo.