Hitachi to invest in U.S. software program developer GlobalLogic for $9.6 billion

FILE Photograph: The brand of Hitachi is viewed at an office building in Zurich, Switzerland September 10, 2020. REUTERS/Arnd Wiegmann

TOKYO (Reuters) -Hitachi Ltd mentioned on Wednesday it will get U.S. program enterprise GlobalLogic Inc for $9.6 billion, as the Japanese industrial conglomerate aims to extend from electronics hardware to electronic companies.

The acquisition is part of Hitachi’s ongoing business enterprise portfolio overhaul, which features the $7 billion acquisition of ABB Ltd’s power grid business past yr and a sequence of divestitures of its domestic components subsidiaries.

The news sent Hitachi’s stock down additional than 7% at just one stage on the Tokyo Stock Exchange.

San Jose-based GlobalLogic is at this time owned 45% every by Canada Pension Program Financial commitment Board and Swiss investment decision firm Associates Team. The relaxation is owned by the company’s management.

Started in 2000, GlobalLogic has more than 20,000 workers in 14 countries and 400 lively purchasers in many industries like automotive, healthcare, technological innovation, according to its web sites.

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

Hitachi is in talks with personal equity firms 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 business enterprise.

Reporting by Makiko Yamazaki Modifying by Kim Coghill