Hyundai Motor Group is acquiring Boston Dynamics for $917 million. The deal is expected to close in June 2021. (Image Credit: Boston Dynamics)
Just search for "Boston Dynamics" here at element14, and you'll find dozens of articles talking about their achievements. No doubt leading to the buyout price here!
Hyundai Motors recently announced that it is acquiring Boston Dynamics from SoftBank Group for $917 million. The deal, which values Boston Dynamics at US1.1 billion, gives Hyundai Motors 80% controlling interest with the remaining 20% going to SoftBank. Hyundai is financing half of the acquisition price with its affiliates, including auto parts maker Hyundai Mobis Co., which pays for the rest. The deal is expected to close by June.
Hyundai has focused more on robotics ever since Chung Euisun was named chairman in October. The company stated that it expects robotics to account for 20% of its future business. How Boston Dynamics fits into Hyundai, which becomes the third owner of Boston Dynamics in seven years, is still a mystery. Google acquired Boston Dynamics in 2013, but after Google X Robotics was dissolved, SoftBank purchased the company in 2017.
"By establishing a leading presence in the field of robotics, the acquisition will mark another major step for Hyundai Motor Group toward its strategic transformation into a Smart Mobility Solution Provider," Hyundai Motor Group said in the press release. "To propel this transformation, Hyundai Motor Group has invested substantially in development of future technologies, including in fields such as autonomous driving technology, connectivity, eco-friendly vehicles, smart factories, advanced materials, artificial intelligence (AI), and robots."
Boston Dynamics is well-known for its technologically advanced robots, such as Spot, which was commercialized in June 2020 and sold to U.S.-only customers for $74,500. Canada, the European Union, and the United Kingdom can now purchase Spot. So far, it has been used to monitor radiation at the Chernobyl Nuclear Power Plant, herd sheep, pull a rickshaw, and help healthcare workers remotely triage patients suspected to have COVID-19. It has already sold over 400 of these robots and generated more than $30 million in revenue. Boston Dynamics also introduced Atlas, the humanoid robot that can do handstands and parkour.
"We are delighted to have Boston Dynamics, a world leader in mobile robots, join the Hyundai team. This transaction will unite capabilities of Hyundai Motor Group and Boston Dynamics to spearhead innovation in future mobility. The synergies created by our union offer exciting new pathways for our companies to realize our goal - providing free and safe movement and higher plane of life experiences for humanity," said Euisun Chung, Chairman of Hyundai Motor Group. "We will also contribute to the society by enhancing its safety, security, public health amid global trends of aging society and digital transformation."
Boston Dynamics is entering the logistics automation market with Pick, a computer vision-based depalletizing solution. It's planning on commercializing its wheeled Handle robot for warehouse and fulfillment use, which is expected to be available next year.
According to the release, "Hyundai Motor Group will provide Boston Dynamics a strategic partner affording access to Hyundai Motor Group's in-house manufacturing capability and cost benefits stemming from efficiencies of scale. Boston Dynamics will benefit substantially from new capital, technology, affiliated customers, and Hyundai Motor Group's global market reach enhancing commercialization opportunity for its robot products."
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