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… ”
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