On Wednesday, in a statement Hitachi Ltd said it will acquire GlobalLogic Inc, a U.S. software company, for $9.6 billion. The development sees the Japanese industrial conglomerate which has business interests ranging from digital services to electronics hardware, expand its footprint in the U.S.

The acquisition is part of Hitachi’s ongoing business portfolio overhaul, which includes the $7 billion acquisition of ABB Ltd’s power grid business last year and a series of divestitures of its domestic hardware subsidiaries.

With the news reaching the market, Hitachi’s stock went down by more than 7% at one point on the Tokyo Stock Exchange.

GlobalLogic’s owners includes Canada Pension Plan Investment Board and Swiss investment firm Partners Group which have a stake of 45% each, with the balance being owned by the company’s management.

Founded in 2000, GlobalLogic has more than 20,000 employees in 14 countries and 400 active clients in across industries including healthcare, automotive, and technology.

Hitachi aims to close the deal by the end of July this year.

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Tags: acquire, acquisition, business portfolio, Canada Pension Plan Investment Board, digital services, divestitures, electronics hardware, GlobalLogic Inc, Hitachi Ltd, industrial conglomerate, Japan, Japanese, M&A, merger, overhaul, Partners Group, software company, stake, U.S., US