Canada Pension Plan Investment Board has agreed to sell its 45 percent interest in GlobalLogic, a San Jose, California-based digital engineering services provider. Hitachi is buying the stake, as well as that held by Partners Group, for an enterprise value of $9.5 billion. The deal is expected to close in Q3 2021. CPPIB invested in GlobalLogic in 2017, while Partners Group invested in 2018.
Toronto, Canada (March 31, 2021) – Canada Pension Plan Investment Board (“CPP Investments”) has agreed to sell its approximately 45% interest in GlobalLogic Worldwide Holdings, Inc., the parent company of GlobalLogic Inc. (“GlobalLogic”), a leader in design-led digital engineering services that develops next-generation software platforms for enterprises worldwide, to Hitachi, Ltd. for an enterprise value of US$9.5 billion.
Founded in 2000, with roots in Silicon Valley’s culture of technology disruption and innovation, GlobalLogic has grown to become one of the leading digital engineering services providers in the industry, with more than 20,000 professionals and other personnel around the world.
CPP Investments has held a joint lead ownership equity stake in GlobalLogic since 2017, helping to support its rapid revenue growth and operations scaling.
GlobalLogic’s digital-native approach has enabled it to attract more than 400 clients across the globe in large and durable industry verticals. Global private markets firm, Partners Group, has been an equal equity partner in GlobalLogic since 2018 and will also be exiting as part of the transaction on behalf of its clients.
“We are proud of what GlobalLogic and its management team have accomplished over the last four years. We thank GlobalLogic’s CEO, Shashank Samant, and the entire team for their outstanding performance during a period of rapid growth where digital transformation and next-generation technologies have become critical to the future of almost every sector of the global economy,” said Hafiz Lalani, Managing Director and Head of Europe, Direct Private Equity, CPP Investments. “CPP Investments maintained our position in GlobalLogic over a period of significant ownership transition. In that time, GlobalLogic performed very well and generated exceptional investment returns, including during the COVID-19 pandemic when the need for digital transformation only accelerated. Hitachi’s acquisition is a testament to GlobalLogic’s exceptional track record and we look forward to watching the company’s continued growth.”
“During the course of our partnership with CPP Investments and Partners Group, GlobalLogic experienced strong growth in our core markets and has secured footholds in new geographies. The global platforms and operational expertise of CPP Investments and Partners Group have been highly valued resources. The teams’ experience building out fast-growing technology businesses and their international footprints have been critical in developing and executing on our expansion plans. We are grateful to CPP Investments and Partners Group for their years of hard work and partnership and feel well-positioned to continue growing as part of the Hitachi family,” said Shashank Samant, Chief Executive Officer, GlobalLogic.
This all-cash transaction has been signed and is subject to customary conditions and regulatory approvals. The transaction is expected to complete in the third quarter of this calendar year. CPP Investments’ net proceeds from the transaction are expected to be approximately US$3.8 billion.
CPP Investments will continue to invest in a diversified portfolio of direct investments in private companies across North America, Europe and Asia. The Direct Private Equity group considers investments across a spectrum of ownership structures and invests in all sectors, except real assets, focusing on sizeable transactions alongside aligned partners in North America and Europe. These partners include private equity funds, family offices, like-minded long-term investors, corporations, entrepreneurs and management teams.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interests of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2020, the Fund totalled $475.7 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.