The Japanese multinational electronics and industrial conglomerate company Hitachi Ltd to acquire U.S digital engineering services company, GlobalLogic for staggering $9.6 billion.
Hitachi, which is based in Tokyo said that the acquisition of the Silicon Valley company will improve Hitachi’s digital operations in a range of business it has which includes mobility Energy, and industry.
This move will speed up efforts in the “digital transformation” of energy, railways and health care systems that are core to Hitachi business.
GlobalLogic is a digital product engineering services company that develops innovative software that powers products, platforms, and digital experiences for the modern world. By integrating experience design, software engineering, and vertical industry expertise.
The American company has around 20,000 professionals in 14 countries, operating software product and design studios with revenue expected to reach about $1.2 billion for the 2021 fiscal year.
Toshiaki Higashihara, The Chief Executive officer of Hitachi said
“Together we will create new social, environmental and economic value for our globally expanding client companies and elevate QoL, or quality of life, for people through contributions to realise a sustainable society.”
Companies around the world are working to adapt to the quick digital changes occurring in the numerous industries. Going forward digital transformation will be a priority for organisations everywhere.
The revenues of GlobalLogic Worldwide Holdings are expected to reach approximately $1.2 billion (129.6 billion yen approx) with adjusted EBITDA*6 margins to be over 20% in fiscal 2021.
GlobalLogic Worldwide Holdings and HGDH have agreed on an equity value of $ 8.5 billion which is around 918.0 billionYEN. With an enterprise value of $ 9.5 billion.
Hitachi will acquire GlobalLogic Worldwide Holdings through a merger involving MergeCo H Global Inc. (“SPC”), a subsidiary established by HGDH for the purpose of the transaction.
The “reverse triangular merger method” will be adopted. SPC will be merged with and into GlobalLogic Worldwide Holdings, specifically.
