SEOUL: Hyundai Motor Group and its chairman have agreed to buy a controlling stake in Boston Dynamics from SoftBank Group Corp. in a deal that values the US-based robot maker at $1.1 billion.
The South Korean automaker group said on Friday the purchase would help it expand automation in its vehicle factories and design autonomous cars, drones and robots, as it seeks to turn itself from a manufacturer into a broader mobility service provider.
Hyundai Motor Group said the deal, which involves a new share issue, would give the company and its chief a combined 80 percent stake in Boston Dynamics, while Softbank will retain 20 percent.
Newly promoted Hyundai Motor Group Chairman Euisun Chung has pledged to reduce reliance on traditional car manufacturing. He has said robotics would account for 20 percent of the firm’s future business, while car-making would account for 50 percent and urban air transport would make up the remaining 30 percent.
Chung will own a 20 percent stake in Boston Dynamics, while Hyundai Motor and its affiliates Hyundai Mobis and Hyundai Glovis will hold a combined 60 percent stake.
SPEEDREAD
● Newly promoted Hyundai Motor Group Chairman Euisun Chung has pledged to reduce reliance on traditional car manufacturing.
● He has said robotics would account for 20 percent of the firm’s future business, while car-making would account for 50 percent and urban air transport would make up the remaining 30 percent.
Softbank Group Chief Executive Masayoshi Son said the partnership with Hyundai Motor Group would accelerate the robot maker’s path to commercialization.
Boston Dynamics, which was spun out from the Massachusetts Institute of Technology in 1992, was bought by Google in 2013 and sold to SoftBank in 2017.
The company’s products include Spot, a dog-like robot that can climb stairs. The firm has gained media attention although the company has struggled to build a commercial business.
Boston Dynamics reported a net loss of $103 million for the fiscal year ending in March 2020, widening its losses by more than 60 percent from a year earlier.
The transaction, subject to regulatory approvals and other customary closing conditions, is expected to close by June 2021.
Boston Dynamics’ clients include Ford Motor Co, which leased two Spot robots in July as part of a pilot program.
Last year, Ford Motor also said it was partnering with walking robot maker Agility Robotics as it designs a planned fleet of self-driving delivery vans that will drop packages at the doorsteps of people’s homes.
