South Korean vehicle manufacturer Hyundai Motor Group has announced the acquisition of a controlling stake in the U.S robotics firm Boston Dynamics.
The deal was initiated last year in December, where the automaking firms will buy a share of $880 million. The deal will involve Hyundai and its affiliates, including Hyundai Motor Co., Hyundai Mobis Co., and Hyundai Glovis Co.
Hyundai Motor, Hyundai Mobis, Hyundai Glovis, and Hyundai Motor Group Chairman Chung Euisun will have 30%, 20%, 10%, and 20% share respectively.
The deal marks the first acquisition since Chung officially took over the leadership of the Korean automotive company. The investment will elevate Hyundai an uplift in designing industrial robots for factory use and logistics.
Boston Dynamic valued at $1.1 billion
Notably, Boston Dynamics is known for releasing technologically advanced machines, including a maneuverable dog-like robot. Currently, Japanese investment firm SoftBank Group values Boston Dynamics at around $1.1 billion.
The acquisition also seeks to blend into Hyudai’s large-scale industry goal of increasing market competitiveness within mobility solutions.
The M&A deal follows Hyundai’s recent efforts of ramping up different investments to gain the upper hand in the sector. In December, the company also announced it would invest 60.1 trillion won by 2025 for future mobility.
In October 2019, the company announced that half of its business would be linked to car manufacturing, with urban air mobility occupying the second spot, followed by robotics.