Hitachi to Buy U.S. Software Developer GlobalLogic for $9.6 Billion
Hitachi’s purchase of GlobalLogic for $9.6 billion is the largest outbound acquisition of a US tech company on record. GlobalLogic’s expertise stretches from chips to cloud services and will extend the range of Hitachi’s own digital services business.
TOKYO (Reuters) -Hitachi Ltd said on Wednesday it will buy U.S. software company GlobalLogic Inc for $9.6 billion, including repayment of debt, as the Japanese industrial conglomerate pivots from electronics hardware to digital services.
The deal is the biggest Japanese outbound acquisition of a U.S. hi-tech company on record, according to Refinitiv data.
The acquisition is part of Hitachi's ongoing business portfolio overhaul, which includes the $7 billion acquisition of ABB Ltd's power grid business last year and a series of divestitures of its domestic hardware subsidiaries.
Hitachi's stock tumbled 7% on the Tokyo Stock Exchange, its sharpest daily fall in more than a year, on the news.
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