Hitachi to get U.S. software package developer GlobalLogic for $9.6 billion

FILE Image: The symbol of Hitachi is found at an business making in Zurich, Switzerland September 10, 2020. REUTERS/Arnd Wiegmann

TOKYO (Reuters) -Hitachi Ltd reported on Wednesday it will obtain U.S. software program enterprise GlobalLogic Inc for $9.6 billion, as the Japanese industrial conglomerate aims to extend from electronics components to electronic services.

The acquisition is part of Hitachi’s ongoing company portfolio overhaul, which contains the $7 billion acquisition of ABB Ltd’s ability grid company last yr and a series of divestitures of its domestic hardware subsidiaries.

The information despatched Hitachi’s inventory down much more than 7% at a single level on the Tokyo Inventory Trade.

San Jose-based mostly GlobalLogic is currently owned 45% every single by Canada Pension Plan Investment Board and Swiss financial investment company Companions Group. The rest is owned by the company’s management.

Launched in 2000, GlobalLogic has additional than 20,000 workers in 14 international locations and 400 active clients in numerous industries such as automotive, health care, technological innovation, in accordance to its websites.

Hitachi is aiming to close the transaction by the stop of July.

Hitachi is in talks with personal equity corporations to market Hitachi Metals Ltd, a offer that could fetch far more than $6.4 billion, next the sale of its chemical unit and diagnostic imaging small business.

Reporting by Makiko Yamazaki Editing by Kim Coghill