Business General News

Amazon reveals its plan to invest in French warehouse robotics firm Baylo

Earlier in the week, Amazon announced that as part of its deal with warehouse robotics firm Baylo in which it could build a stake of possibly a third would result in the boost of sales of Balyo’s technology for self-driving forklift trucks.

As per reports, as part of Amazon’s efforts to cut costs and speed up deliveries it has made Warehouse automation a key element.

Currently, The world’s biggest online retailer utilizes robots developed by Kiva Systems, a company it successfully acquired for US$775 million (RM3.17bil) back in 2012.

Earlier in the day, Thursday, 10th January, Balyo chief executive Fabien Bardinet said, “This agreement is a representation of an unprecedented opportunity for Balyo to grow its business and supports the soundness of our investments over the course of time in a bid to improve our robotic solutions.”

Under the terms of the deal, Amazon is eligible to receive free stock warrants amounting up to 29% of Balyo’s capital which it can exercise depending on orders of the company’s products.

As per reports, provided that Amazon orders nearly €300mil (RM1.41bil) of Balyo’s enabled products the entire 29% would be exercised.

According to a report by Reuters, Balyo, a company which has its navigation system turn forklifts into self-driving vehicles, had forecasted its 2018 revenue to reach €23.3mil (RM110.18mil), up 40% in comparison to its previous year.

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