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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.
San Jose-based GlobalLogic is currently owned 45% each by Canada
Pension Plan Investment Board and Swiss investment firm Partners
Group. The rest is owned by the company's management.
Founded in 2000, GlobalLogic has more than 20,000 employees in
14 countries and offers software engineering services to 400
active clients in industries including automotive, healthcare,
and finance.
GlobalLogic's expertise stretches from chips to cloud services
and will extend the range of Hitachi's own digital services
business, company executives told a news conference.
Past GlobalLogic projects include working with McDonald's on its
customer app and in-store digital ordering system and with
chipmaker Qualcomm on a fingerprint recognition system,
according to its website.
Hitachi aims to close the transaction, which will be funded with
cash and bank loans, by the end of July.
The conglomerate is in talks with private equity firms to sell
Hitachi Metals Ltd, a deal that could fetch more than $6.4
billion, following the sale of its chemical unit and diagnostic
imaging business.
(Reporting by Makiko Yamazaki; Editing by Kim Coghill)
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