Hitachi Ltd said on Wednesday it will buy U.S. software company GlobalLogic Inc for US$9.6 billion, including repayment of debt, as the Japanese industrial conglomerate pivots from electronics hardware to digital services.
The acquisition is part of Hitachi's ongoing business portfolio overhaul, which includes the US$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 7per cent on the Tokyo Stock Exchange - the biggest fall in more than a year - on the big ticket deal.
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.