Balyo, a technological leader in designing robotic solutions, on Thursday said it has entered into an agreement with Amazon to sell its self-driving forklift trucks, which could cut costs and speed up deliveries of e-commerce major.
Currently, Amazon uses robots developed by Kiva Systems for warehouse automation. Amazon had acquired Kiva Systems for USD 775 million in 2012. The world's biggest online retailer uses automation in its fulfillment centers to simplify operations, reduce costs and increase flexibility.
As per agreement, Amazon will receive free stock warrants up to 29 per cent of Balyo's capital which will be based on Amazon's purchase of Balyo-enabled products.
"The full number of stock warrants, representing up to 29 per cent of Balyo's share capital and voting rights, would become exercisable to Amazon's if it orders up to EUR 300 million of Balyo-enabled products," Balyo said in a statement.
Commenting on the development, Fabien Bardinet, Chairman and Chief Executive Officer, stated: "We are very proud to have signed this agreement. It represents an unprecedented opportunity for BALYO to grow its business and supports the soundness of our investments over the years to perfect our robotic solutions."
Amazon has the right to appoint an observer at Balyo's board of directors, said the company.
Balyo expects 2018 revenue to be around EUR 23.3 million, growing more that 40 per cent from 2017, it added.
Edited by Chitranjan Kumar