Japanese industrial giant Hitachi Ltd. announced today that it was acquiring GlobalLogic Inc., a privately held digital engineering services company based in Silicon Valley for $9.6 billion. The purchase price values the company’s shares at $8.5 billion, more than three times what they were worth just three years ago, with $1.1 billion allocated to paying off its debt. Canada Pension Plan Investment Board and Partners Group, the two largest shareholders in GlobalLogic, each stand to net $3.8 billion from the sale.
Hitachi made the acquisition to strengthen the digital portfolio of Lumada, its digital solutions business focused on what it calls “social infrastructure”, which includes sectors such as rail, energy, and healthcare. Lumada sees itself as an engine of value creation for its customers and partners focused on insights derived from data. In turn, GlobalLogic, with its 20,000 strong workforce possessing deep capabilities in software product engineering and vertical industry knowhow, is seen as a growth engine for Lumada.
Read the full article on forbes.com.
“The purchase price values the company’s shares at $8.5 billion, more than three times what they were worth just three years ago… ”
What Gartner’s $4.4 Trillion IT Spending Forecast Tells Us: It’s A Software Economy
Worldwide IT spending in 2022 is poised to exceed $4.4 trillion, an increase of 4% over 2021, even after growing at the torrid pace of 9.5% the year before. When the pandemic first hit in early 2020, unsure about the business implications, CIOs pulled back...
What GitLab’s $11 Billion IPO Says About In House Software Development: Iterate To Innovate
On October 14, GitLab, a ten-year old coding platform company with just 1,350 employees, went public at a valuation of $11 billion. Just over two weeks later, the stock is up over 50%, giving the company a market capitalization of $17 billion. This valuation is for a...
CIOs: Apply These Lessons From The Pandemic To Win The Recovery
The Bureau of Economic Analysis announced on July 29, 2021 that real economic output of the US grew at an annual rate of 6.5% in the second quarter. Following on the heels of a strong first quarter, US GDP has exceeded its pre-pandemic levels in remarkably short...