E-commerce giant Amazon.com has reached an agreement to acquire order material handling company Kiva Systems, Inc, for US$775m in cash.
The deal will bring more robotic technology to Amazon’s network of warehouses.
“Amazon has long used automation in its fulfilment centres, and Kiva’s technology is another way to improve productivity by bringing the products directly to employees to pick, pack and stow,” said Dave Clark, vice-president, global customer fulfilment, Amazon.com.
“Kiva shares our passion for invention, and we look forward to supporting their continued growth.”
Mick Mountz, CEO and founder of Kiva Systems, said the company has been focused on creating innovative material handling technologies.
“I’m delighted that Amazon is supporting our growth so that we can provide even more valuable solutions in the coming years," Mountz said.
Following the acquisition, Kiva Systems’ headquarters will remain in North Reading, Massachusetts.
The deal is expected to close in the second quarter of 2012.