Amazon To Acquire Robot Manufacturer, Kiva Systems, In $775m Cash

If Google is the search giant then Amazon is undoubtedly the e-commerce giant on the Internet. Amazon has recently announced that it is acquiring Kiva Systems in $775 million, a Massachusetts based company that makes robots to help retailers in the warehouses for inventory purposes. The transaction will be closed in the second quarter of this year.

Dave Clark, Amazon.com’s vice president of global customer fulfillment said in a statement “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.”

As a part of its expansion plan the online retailer is adding 17 warehouses to its 52 warehouses, making it a total of 69.

“As we continue to add fulfillment and warehouse capability or add new businesses with different fulfillment requirements, our fulfillment network becomes increasingly complex and operating it becomes more challenging.”

Kiva Systems was founded by Mick Mountz in 2003, since then the company has served the big names like Gap, Staples, and Saks.

etechmag.com