Hitachi is acquiring US software company GlobalLogic for $9.6bn (£6.9bn, €8.1bn), as the Japanese industrial conglomerate looks to expand into digital services.
The acquisition is part of Hitachi’s ongoing business portfolio overhaul, which includes the $7bn acquisition of ABB Ltd’s power grid business last year and several divestitures of its domestic hardware subsidiaries.
Hitachi aims to close the deal by the end of July.
Hitachi’s stock was down more than seven per cent at one point on the Tokyo Stock Exchange after the news came out.
Canada Pension Plan Investment Board and Swiss investment firm Partners Group currently both have a 45 per cent stake each in San Jose-based GlobalLogic. The rest is owned by the company’s management.
Founded in 2000, GlobalLogic has more than 20,000 employees in 14 countries and 400 active clients in industries including automotive, healthcare and technology, according to its websites.
Hitachi is in talks with private equity firms to sell Hitachi Metals, a deal that could bring more than $6.4bn, following the sale of its chemical unit and diagnostic imaging business.