Hitachi, Ltd. announced that it will acquire GlobalLogic Inc., a US-based software development firm for $9.6 billion. The transaction is subject to customary conditions and regulatory approvals and expected to be completed by the end of July 2021.
Hitachi expects the addition of GlobalLogic’s advanced digital engineering capabilities and its solid client base that include major technology companies, to strengthen its digital portfolio. The acquisition will create synergies across Hitachi’s five sectors – IT, energy, industry, mobility, and smart life – and automotive systems business by accelerating the advanced digital transformation of social infrastructures such as rail, energy, and healthcare at a global scale.
GlobalLogic has a significant presence in India, with over 20,000 professionals in 14 countries, GlobalLogic operates design studios and software product engineering centers around the world. The company had been ramping up its presence in India since 2019. The Hitachi-GlobalLogic deal is also significant because it is one of the biggest deals in the engineering space. Prominent players in the space include Pune-based Persistent Systems, Cyient and QuEST.