Hitachi agreed to buy GlobalLogic, a Silicon Valley company that designs and builds software for other businesses, for $9.6 billion including the repayment of its debt. GlobalLogic was owned about 45% each by Canada Pension Plan Investment Board and Partners Group, with managers holding the rest. It had more than 20,000 engineers, mostly in Eastern Europe, Latin America and India. The deal Hitachi announced on March 31, 2021 that it would buy all of GlobalLogic Worldwide Holdings through its US unit, Hitachi Global Digital Holdings. The total cost was $9.6 billion including the repayment of GlobalLogic's debt, paid with cash on hand and bank loans. The sellers were Canada Pension Plan Investment Board and Swiss firm Partners Group, which each held about 45%, plus GlobalLogic's managers. About GlobalLogic GlobalLogic was founded in 2000 and is based in San Jose, California. It designs digital products, such as apps and connected-device software, for about 400 clients in fields like telecoms, cars, health care and finance. Most of its 20,000-plus engineers worked in development centers in Ukraine, Poland, Latin America and India. Its revenue was growing about 20% a year. Why Hitachi did it Hitachi wanted to grow Lumada, its set of digital services that use data from the equipment it sells, such as trains, power grids and factory machines. It lacked enough software designers who could work directly with customers, especially in the US. GlobalLogic gave it that team at once. Investors worried about the price, which was very high compared with GlobalLogic's earnings, and Hitachi's shares fell after the news. What happened next The deal closed on July 13, 2021. GlobalLogic stayed a separate brand inside Hitachi's digital business. After Russia invaded Ukraine in 2022, it moved many Ukrainian staff to safer areas and kept growing in other countries.
