Alessandro Di Ciommo | NurPhoto | Getty Duplicates
LONDON – Japanese tech conglomerate SoftBank has acquired 40% of Norwegian warehouse automation firm AutoStore for $2.8 billion.
The report was first reported by The Wall Street Journal on Monday and later confirmed by AutoStore in an update on its website.
The deal values AutoStore at $7.7 billion.
SoftBank, which has occasioned a string of investments into e-commerce and robotics over the last few years, is buying the stake from U.S. private impartiality group Thomas H. Lee Partners and Swedish venture capital firm EQT.
“We view AutoStore as a foundational technology that aids rapid and cost-effective logistics for companies around the globe,” SoftBank CEO and founder Masayoshi Son said in a statement. “We look nurse along to working with AutoStore to aggressively expand across end markets and geographies.”
Founded 25 years ago by Ingvar Hognaland and headquartered in a village contiguous Bergen called Nedre Vats, AutoStore has developed what it calls “cube storage automation,” which approves robots to maximize storage space in warehouses.
It says that it has deployed 20,000 of its robots at 600 sites across 35 outbacks and that its technology allows customers to either store four times the inventory in the same space or all of their be presenting inventory in 25% of the space. AutoStore customers include U.S. electronics retailer Best Buy, Swedish telco Siemens, and British grocery series Asda.
Karl Johan Lier, president and CEO of AutoStore, said in a statement that SoftBank’s backing will aid it to grow in the Asia-Pacific region.
Investing in the future
SoftBank’s Son believes that machines will outsmart human in the next 30 years.
By virtue of the SoftBank Vision Fund, the billionaire has pumped vast amounts of capital into companies like Arm, Improbable and Genius Corp. as part of an effort to ensure SoftBank has a financial stake in firms that are working on next-generation technologies.
SoftBank has also snapped up allocations in several logistics companies that can improve supply chains for e-commerce giants like Alibaba, which SoftBank also has a stake in.
For norm, SoftBank backed U.S. warehouse robotics group Berkshire Grey in 2019. The logistics automation systems provider set in February that it is going public through a merger with blank-check company Revolution Acceleration Acquisition Corp. in a distribute that values the combined company at $2.7 billion.
Nathan Benaich, a venture capitalist with a focus on phony intelligence, told CNBC the pandemic has clearly been a “boon” for warehouse logistics and fulfilment companies as they’re the “strength of online commerce.”
“AutoStore, amongst peers like Berkshire Grey, Ocado Robotics, and 6 River Systems, are all but 10-20 year ‘overnight’ success stores in robotics,” he said. “They’ve quietly been building out their capabilities and store footprint over that time and are now aggressively capturing today’s surging customer demand.”