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…

Recent Posts

Five Steps To Thinking Like A Software Company

Five Steps To Thinking Like A Software Company

“The best part of building software is the job is never done. Since starting Box, I don’t think I’ve ever left a customer conversation where this [sic] isn’t something new left to go do. Build the future, listen to your customers, repeat.” Those words come from Aaron...

read more
CIOs: With Vaccines On The Horizon, It’s Time To Accelerate

CIOs: With Vaccines On The Horizon, It’s Time To Accelerate

Now that effective vaccines for Covid-19 are likely to be approved soon, how should CIOs prepare for a post-pandemic world? The timeline for widescale immunization and a return to a world without restrictions is highly uncertain. Still, there’s light at the end of the...

read more