Hitachi buys digital engineering services firm GlobalLogic for $9.6b
The acquisition of GlobalLogic is part of Hitachi’s broader plan to shift its focus from hardware to digital services.
It will enable the Hitachi to focus on key focus areas such as IT, energy, industry, and mobility, while also allowing it to speed up digital transformation efforts for rail, energy, and healthcare
Hitachi has announced that it will buy US-based digital engineering services company GlobalLogic for $9.6 billion under global expansion plans for its IoT digital services business Lumada.
The acquisition is part of the Japanese conglomerate's broader plan to shift its focus from hardware to digital services.
The company said the acquisition will enable the company to focus on key focus areas such as IT, energy, industry, and mobility, while also allowing it to speed up digital transformation efforts for rail, energy, and healthcare.
GlobalLogic operates design studios and software product engineering centres in 14 countries, with revenue expected to reach about $1.2 billion for fiscal 2021. It will operate as a wholly-owned subsidiary of Hitachi once the deal is finalised.
"The acquisition of GlobalLogic creates an exciting new opportunity for Hitachi to expand our offerings of Lumada solutions and services, provide values to customers in their digital transformation journey, and grow our Lumada business globally," Hitachi president and CEO Toshiaki Higashihara said.
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