Partners Group, a global private markets firm, has agreed to sell its joint lead ownership stake in GlobalLogic, a specialist in digital engineering services, to Japanese conglomerate Hitachi LTD (Hitachi), on behalf of clients.
The transaction values GlobalLogic at an enterprise value of USD9.5 billion. In 2018, Partners Group acquired a joint lead ownership equity stake in GlobalLogic alongside equity partner Canada Pension Plan Investment Board (CPP Investments) at an enterprise value of USD 2 billion. Partners Group and CPP Investments each hold an equity ownership interest of approximately 45 per cent in the business and will both be exiting as part of the transaction.
Founded in 2000 and headquartered in San Jose, California, GlobalLogic is a leader in design-led digital engineering services that develops next-generation software platforms for enterprises and technology disruptors worldwide. The Company has over 20,000 professionals and other personnel operating from 30 engineering centres and eight design studios spanning four continents. Aligned with Partners Group’s focus on investments that have broad positive stakeholder impact, GlobalLogic has played an instrumental role in helping businesses navigate the digital transition, a key transformative trend that accelerated during the Covid-19 pandemic, helping create a more efficient and sustainable society. GlobalLogic’s services accelerate clients’ digital futures through a combination of best-in-class design expertise, engineering and data-driven insights.
Over the last three years, Partners Group used its entrepreneurial governance approach at GlobalLogic to support the implementation of several transformational value creation initiatives and drive the Company’s strong growth. Key initiatives have included increasing the size of the Company’s top accounts, many of which are global marquee brands, and introducing a more targeted sales strategy in certain customer segments, including the development of a private equity-focused sales channel. An increased client base and rising demand has led to GlobalLogic hiring more than 7,000 additional software designers, engineers, and data experts since Partners Group’s initial investment. Under Partners Group and CPP Investments’ ownership, GlobalLogic has also completed four strategic acquisitions, including three in Europe, further adding significant value to the business. Additionally, Partners Group enhanced the Company’s focus on environmental, social and governance (ESG) initiatives, helping the Company establish a dedicated ESG function focused on refining and implementing its ESG strategy going forward.
Read more/Source: Private Equity Wire
