Hyundai Buying Controlling Interest In Boston Dynamics From SoftBank

By Amit Chowdhry ● Dec 13, 2020
  • Hyundai Motor Company (OTCMKTS: HYMTF) announced it is buying an 80% stake in Boston Dynamics in a deal that values the robotics company at $1.1 billion. These are the details.

Hyundai Motor Company (OTCMKTS: HYMTF) announced it is buying an 80% stake in Boston Dynamics in a deal that values the robotics company at $1.1 billion. And SoftBank will retain an approximately 20% stake in Boston Dynamics through an affiliate. Hyundai Motor Group’s affiliates Hyundai Motor Co., Hyundai Mobis Co., and Hyundai Glovis Co., and Hyundai Motor Group Chairman Euisun Chung respectively participated in the acquisition.

This acquisition will mark another major step for Hyundai toward its strategic transformation into a Smart Mobility Solution Provider. And to propel this transformation, Hyundai Motor Group also invested substantially in the development of future technologies, including in fields such as autonomous driving technology, connectivity, eco-friendly vehicles, smart factories, advanced materials, AI, and robots.

Advanced robotics offer opportunities for rapid growth with the potential to positively impact society in multiple ways. And Boston Dynamics is the established leader in developing agile and mobile robots that have been successfully integrated into various business operations. This deal is also expected to allow Hyundai Motor Group and Boston Dynamics to leverage each other’s respective strengths in manufacturing, logistics, construction, and automation.

Boston Dynamics had launched sales of its first commercial robot Spot in June of 2020 and has since sold hundreds of robots in a variety of industries, such as power utilities, construction, manufacturing, oil and gas, and mining. And Boston Dynamics plans to expand the Spot product line early next year with an enterprise version of the robot with greater levels of autonomy and remote inspection capabilities, and the release of a robotic arm, which will be a breakthrough in mobile manipulation.

And Boston Dynamics is also entering the logistics automation market with Pick, a computer vision-based depalletizing solution, and will introduce a mobile robot for warehouses starting next year.

Based in Seoul, South Korea, Hyundai Motor Group is a global automotive group operating in the automobile, steel, construction, machine tools, logistics, and other industries. With over 16,000 employees working in 40 facilities across 10 states, including its $1.8 billion auto manufacturing plant in Alabama, Hyundai Motor is known as being a well-established investor, manufacturer, and innovator in the U.S.

Over time, Hyundai Motor Group plans to expand its presence into the humanoid robot market with the aim of developing humanoid robots for sophisticated services like caregiving for patients at hospitals. And Hyundai Motor Group envisions robotics technologies to lend synergies to the new mobility solutions like autonomous driving and UAM as well as smart factory platforms it hopes to develop in the near future.

The deal — which is subject to regulatory approvals and other customary closing conditions — is expected to close by June of 2021.

KEY QUOTES:

“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. We will also contribute to the society by enhancing its safety, security, public health amid global trends of aging society and digital transformation.”

— Euisun Chung, Chairman of Hyundai Motor Group

“Boston Dynamics is at the heart of smart robotics. We are thrilled to partner with Hyundai, one of the world’s leading global mobility companies, to accelerate the company’s path to commercialization. Boston Dynamics has a very bright future and we remain invested in the company’s success.”

— Masayoshi Son, Representative Director, Corporate Officer, Chairman & CEO of SoftBank Group

“Boston Dynamics’ commercial business has grown rapidly as we’ve brought to market the first robot that can automate repetitive and dangerous tasks in workplaces designed for human-level mobility. We and Hyundai share a view of the transformational power of mobility and look forward to working together to accelerate our plans to enable the world with cutting edge automation, and to continue to solve the world’s hardest robotics challenges for our customers.”

— Robert Playter, CEO of Boston Dynamics