FX.co ★ Hitachi to focus on digital solutions business

Japan’s electronics giant Hitachi has decided to change its core areas of activity. The company is heading towards digital technology and is planning to focus entirely on this industry.

Demonstrating its strong intention, Hitachi announced that it would buy a ready-made business, namely GlobalLogic, one of the world's largest IT outsourcing companies. Today, this firm is a true veteran of the high-tech industry and a leader in designing and developing latest technology innovations and software solutions. Founded in Silicon Valley 21 years ago, GlobalLogic handles digital projects by distributing them through developers from India, South America, and Eastern Europe.

According to official data, Canada Pension Plan Investment Board and Swiss investment fund Partners Group are the largest shareholders in GlobalLogic. They each own 45% of the company. The remaining 10% of its stock is distributed among the management firms of GlobalLogic. The amount of the transaction has not yet been announced. However, a source close to the matter said that Hitachi would have to pay around $10 billion.

This acquisition will help Hitachi shift its focus towards digital services. As a part of Hitachi, GlobalLogic will operate at the Hitachi Global Digital Holdings division. This is a US subsidiary of Hitachi that has already carved a niche in the American IT services market. However, the Japanese electronics giant is going to buy out all the shares this July and become the sole owner of GlobalLogic.