Amazon spends near a billion bucks on automated handling firm Kiva Systems
12 December 2012
Amazon.com has reached an agreement to acquire Kiva Systems a supplier of material handling technology.
Amazon.com has reached an agreement to acquire Kiva Systems, a supplier of material handling technology.
"Amazon has long used automation in its fulfillment centers, and Kiva's technology is another way to improve productivity by bringing the products directly to employees to pick, pack and stow,” said Dave Clark, vice president, global customer fulfillment, Amazon.com.
"Kiva shares our passion for invention, and we look forward to supporting their continued growth.”
"For the past ten years, the Kiva team has been focused on creating innovative material handling technologies,” said Mick Mountz, CEO and founder of Kiva Systems. "I'm delighted that Amazon is supporting our growth so that we can provide even more valuable solutions in the coming years.”
Following the acquisition, Kiva Systems' headquarters will remain in North Reading, Massachusetts.
Under the terms of the agreement, which has been approved by Kiva's stockholders, Amazon will acquire all of the outstanding shares of Kiva for approximately $775 million in cash, as adjusted for the assumption of options and other items. Subject to various closing conditions, the acquisition is expected to close in the second quarter of 2012.
Kiva uses automation technology for distribution centres that helps companies simplify operations and reduce costs while increasing strategic flexibility.
Using hundreds of autonomous mobile robots and sophisticated control software, the Kiva Mobile-robotic Fulfillment System enables fast cycle times with reduced labor requirements, from receiving to picking to shipping. The result is a building that is quick and low-cost to set up, inexpensive to operate and easy to change anywhere in the world, says the firm.
Kiva showed off its systems and solutions in the UK at IMHX 2010.