Japan’s Hitachi is buying US-headquartered software development firm GlobalLogic Inc. for $9.6 billion. Through the acquisition, Hitachi expects the addition of GlobalLogic’s advanced digital engineering capabilities, and its solid client base including major technology companies, to strengthen the digital portfolio of Lumada (Hitachi’s advanced digital solutions and services for turning data into insights that drive digital transformation of social infrastructure).

Hitachi Vantara LLC, a U.S.-based subsidiary of Hitachi and its digital infrastructure, data management, and digital solutions business, plays a key role in driving Lumada business growth in the global market.

According to the company, 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.

Through its Social Innovation Business delivered by collaborative creation with customers, Hitachi aims to increase social, environmental, and economic value for its customers and realize a sustainable society.

Headquartered in Silicon Valley, GlobalLogic operates design studios and software product engineering centers around the world with over 20,000 professionals in 14 countries.

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. In this acquisition, the “reverse triangular merger method” will be adopted.

Specifically, SPC will be merged with and into GlobalLogic Worldwide Holdings, which will be the surviving company.

The transaction is likely to be completed by the end of July 2021.