Hitachi announced on Thursday that the acquisition is based on the definitive agreement among Hitachi Global Digital Holdings Corporation, a US subsidiary, and GlobalLogic Worldwide Holdings, Inc., the parent company of GlobalLogic.
The transaction is subject to customary conditions and regulatory approvals and expected to be completed by the end of July 2021.
Hitachi says the acquisition will accelerate the digital transformation of “social infrastructure on a global scale” by aligning GlobalLogic's advanced digital engineering services with Hitachi’s Lumada portfolio.
“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,” Hitachi said in a statement.
“Through its Social Innovation Business delivered by collaborative creation with customers, Hitachi aims to increase social, environmental, and economic value for its customers and realise a sustainable society.
“Headquartered in Silicon Valley, GlobalLogic is a leading company in the fast-growing digital engineering services market. With over 20,000 professionals in 14 countries, GlobalLogic operates design studios and software product engineering centers around the world,” Hitachi said.
“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 company has a solid client base with over 400 clients comprised of market leaders and marquee brands spanning key industries such as communications, financial services, automotive, healthcare & life sciences, technology, media and entertainment, and manufacturing.
“Digital transformation (DX) investment is growing at an accelerated pace globally. IDC predicts that 65% of global GDP will be digitalised by 2022 driven by products and services from digitally transformed enterprises.
“In addition, according to Zinnov (a research & advisory company specialising in Product Engineering and Digital Transformation) the total addressable market for digital engineering will grow to 1.1 trillion U.S. dollars by 2025, growing at a compound annual growth rate (CAGR) of 19%,” Hitachi noted.