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

FILE Picture: The logo of Hitachi is noticed at an place of work building in Zurich, Switzerland September 10, 2020. REUTERS/Arnd Wiegmann

TOKYO (Reuters) -Hitachi Ltd claimed on Wednesday it will obtain U.S. software package business GlobalLogic Inc for $9.6 billion, as the Japanese industrial conglomerate aims to grow from electronics hardware to electronic expert services.

The acquisition is portion of Hitachi’s ongoing enterprise portfolio overhaul, which features the $7 billion acquisition of ABB Ltd’s electrical power grid small business past year and a series of divestitures of its domestic hardware subsidiaries.

The information despatched Hitachi’s stock down a lot more than 7% at one point on the Tokyo Stock Exchange.

San Jose-based mostly GlobalLogic is at present owned 45% every single by Canada Pension Prepare Expenditure Board and Swiss financial commitment business Associates Group. The rest is owned by the company’s management.

Established in 2000, GlobalLogic has much more than 20,000 workforce in 14 international locations and 400 lively shoppers in various industries which include automotive, health care, technological know-how, according to its internet websites.

Hitachi is aiming to shut the transaction by the conclusion of July.

Hitachi is in talks with non-public fairness firms to promote Hitachi Metals Ltd, a deal that could fetch much more than $6.4 billion, next the sale of its chemical device and diagnostic imaging business enterprise.

Reporting by Makiko Yamazaki Enhancing by Kim Coghill