Hitachi has completed the acquisition of GlobalLogic, making it a wholly-owned subsidiary.
In March, Hitachi said it would
acquire GlobalLogic in a deal estimated at $9.6 billion, the biggest such deal in the engineering services space, valued at over two times Capgemini’s acquisition of Altran in 2020 for $4 billion.
GlobalLogic will continue to operate as an independent brand under the Hitachi umbrella.
With the regulatory approvals in place, the two companies will chart a roadmap on how they can work together, said Sumit Sood, group vice president and Head-APAC, GlobalLogic.
“In terms of numbers, from 14 countries where we are operating today, we now have an opportunity to operate in 80 different countries, from five industries to 14 industries. So, we have an opportunity to apply our software and engineering across a bunch of different areas,” Sood said.
On the operations side, not much is expected to change.
The two companies will, however, work to cross-sell services and offerings to customers as well as leverage their global talent pool.
Nearly half of GlobalLogic’s workforce of 21,000 sits in India.
Sood said the company has been growing at a Compounded Annual Growth Rate of 27% for over five years.
“I see an increase in leveraging of talent from India. The growth is only expected to accelerate and not slow down from here on,” he said.
The India centres work primarily on ecommerce, medical devices, banking, telecom and media, along with working on autonomous driving technologies.
The two companies will work together to address the growing market for digital innovation.
Hitachi expects collaboration between GlobalLogic and its five sectors — IT, energy, industry, mobility, smart life, and its automotive systems business (Hitachi Astemo) — to add value to its wide range of products, adding advanced digital technologies, and creating new Lumada solutions.
With companies across sectors focusing on digital transformation of their businesses, there is a lot of potential to tap into the combined strengths of both.
Hitachi’s information technology and operational technology offerings will complement GlobalLogic’s digital product engineering capabilities to provide a more comprehensive solution to customers.
GlobalLogic will accelerate the development, market reach and client delivery of Hitachi’s Lumada advanced digital solutions and services on a global scale, it said.
As of March 2021, Hitachi’s revenues were $78.6 billion, with 350,000 employees worldwide.