Hyundai Motor and its chairman have agreed to purchase a controlling stake in Boston Dynamics from SoftBank Group in a deal that values the U.S.-based robot maker at $1.1 billion.
The South Korean automaker group said on Friday the deal would help it expand automation in its automobile factories and design autonomous cars, drones, and robots, as it seeks to transform itself from a manufacturer into a broader mobility service provider.
Hyundai Motor said the deal, which involves a new share issue, would provide the company and its chief a combined 80% stake in Boston Dynamics, while Softbank will keep 20%.
Newly promoted Hyundai Motor Group Chairman Euisun Chung has pledged to decrease dependence on traditional car manufacturing. He has said robotics would represent 20% of the firm’s future business, while automaking would account for 50% and urban air transport would comprise the remaining 30%.
Chung will own a 20% stake in Boston Dynamics, while Hyundai and its affiliates Hyundai Mobis and Hyundai Glovis will hold a combined 60% stake.
Softbank Group Chief Executive Masayoshi Son said the partnership with Hyundai Motor Group would speed up the robot maker’s path to commercialization.
Boston Dynamics, which was spun out from the Massachusetts Institute of Technology in 1992, was purchased by Google in 2013 and sold to SoftBank in 2017.
The company’s products consist of Spot, a dog-like robot that can climb stairs. The firm has gained media attention although the company had a hard time building a commercial business.
Boston Dynamics reported a net loss of $103 million for the fiscal year ending in March 2020, widening its losses by over 60% from a year ago.
The transaction, subject to regulatory authorizations and other customary closing conditions, is expected to close by June 2021.
