Hitachi said it will be buying GlobalLogic, a software company for $9.6 billion, as well as repayment of the debt, as the Japanese company moves from electronics hardware to digital services.
This takeover is a part of Hitachi’s current business portfolio overhaul, which contains the $7 billion acquisition of ABB’s power grid business a year ago and a group of divestitures of its domestic hardware subsidiaries.
Hitachi’s stock fell 7% on the Tokyo Stock Exchange on a big-ticket deal.
Right now, GlobalLogic is 45% each owned by the Canada Pension plan Investment Board and Partners Group and the rest of it is owned by the management of the company.
Hitachi is focused on closing the transaction by the end of July, which will be paid for using cash and bank loans.
The conglomerate is talking to the private equity businesses in order to sell Hitachi Metals Ltd, which could bring in over $6.4 billion, after selling its chemical and diagnostic imaging business.