Amazon Acquires Robotics Company Kiva Systems
E-commerce giant Amazon.com is acquiring robotics company Kiva Systems Inc. for approximately $775 million.
The North Reading, Mass.–based Kiva Systems—which is known for its mobile robots that organize and ship online products from e-commerce warehouses—will be acquired by the Seattle-based online retailer to aid the large number of workers used to run Amazon’s shipping centers. Kiva Systems was recently named by Fast Company magazine as one of the “World’s 50 Most Innovative Companies.”
The acquisition is expected to close in the second quarter of 2012, and Kiva Systems’ headquarters will remain in North Reading, Mass., according to a statement by Amazon.
“I’m delighted that Amazon is supporting our growth so that we can provide even more valuable solutions in the coming years,” said Mick Mountz, chief executive officer and founder of Kiva Systems.
Fleets of the robots are used to differentiate and organize apparel, footwear, cosmetics, skin care, hair products and other merchandise, as well as to deliver pallets and cases to operators in warehouses and distribution centers. The idea behind the mobile robots is that “any item can be delivered to any operator at any time,” according to Kiva’s website.
“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 of global customer fulfillment at Amazon.
Upon news of the buy, shares of Amazon rose more than 4 percent during March 20 trading, according to the Dow Jones newswires.
Kiva’s robots and technology are already used by companies such as Dillard’s, Timberland, Gap Inc. and Estee Lauder.—D.C.
