Hitachi will acquire GlobalLogic, a United States-based digital engineering services company, through transaction that is expected to be completed by the end of July 2021, subject to customary conditions and regulatory approvals.
The acquisition is based on the definitive agreement among Hitachi Global Digital Holdings (HGDH), a US subsidiary, an SPC established by HGDH for the acquisition and GlobalLogic Worldwide Holdings, the parent company of GlobalLogic.
Hitachi will acquire GlobalLogic Worldwide Holdings through a merger involving MergeCo H Global, a subsidiary established by HGDH for the purpose of the transaction.
Through the acquisition, Hitachi expects the addition of GlobalLogic’s advanced digital engineering capabilities, and its client base including major technology companies, to strengthen the digital portfolio of its Lumada portfolio.
Lumada is Hitachi’s advanced digital solutions and services for turning data into insights that drive digital transformation of social infrastructure.
US-based Hitachi Vantara and its digital infrastructure, data management, and digital solutions business, plays a key role in driving Lumada business growth in the global market.
The acquisition will create synergies across Hitachi’s five sectors – IT, Energy, Industry, Mobility and Smart Life – and automotive systems business (Hitachi Astemo) by accelerating the advanced digital transformation of social infrastructure such as rail, energy, and healthcare at a global scale.
Through its Social Innovation Business delivered by collaborative creation with customers, Hitachi aims to increase social, environmental, and economic value for its customers and realize a sustainable society.
Headquartered in Silicon Valley, GlobalLogic has deep “chip-to-cloud” advanced software product engineering technology as well as experience design skills and vertical industry expertise.
By combining these capabilities, GlobalLogic helps clients drive new revenue streams and incremental value for their customers by designing and developing innovative software that powers products, platforms, and digital experiences.
“The synergy of GlobalLogic’s leading experience design and innovation with Hitachi’s expertise in IT, operational technology, and products, will help us realise our goal to be the leading digital transformation innovator in social infrastructure worldwide,” said Toshiaki Higashihara, president and CEO of Hitachi.
“Together, we will create new social, environmental and economic value for our globally expanding client companies and elevate QoL (quality of life) for people through contributions to realise sustainable society,” said Higashihara.
Shashank Samant, president and CEO of GlobalLogic, said they see a tremendous opportunity ahead considering that companies in every industry are transforming with digital technology – to better engage customers, create new revenue streams and drive a higher quality of life.