Hyundai is reportedly in the process of purchasing a large controlling interest in robot innovator Boston Dynamics from SoftBank in a deal valued at $1.1 billion.

The transaction, under which Hyundai will reportedly obtain an 80% stake with SoftBank retaining around 20% through an affiliate, is expected to close by June of 2021, subject to regulatory approvals and other conditions. Boston Dynamics currently produces a variety of mobile robots used by utilities, warehouses, petroleum companies, miners, and manufacturers.

The road leading to this deal has been long and somewhat winding for Boston Dynamics. The company originated out of the Massachusetts Institute of Technology as a start-up, and was later acquired by Alphabet (GOOGL) in 2013, in a deal reportedly worth about $100 million.

Alphabet sold the company to SoftBank in 2017 reportedly due to Alphabet leadership’s desire to trim its budgets for experimental projects such as humanoid and industrial robots.

The sale is consistent with SoftBank’s reported efforts to potentially take SoftBank private, which involves selling off large assets with the proceeds (currently over $50 billion in selloffs) to buy back its stock and pay down debt.

Hyundai has indicated its investment will help its development of service and logistics robots, and down the road more humanoid robots in the healthcare space, autonomous driving and smart factories.

Here are some reports relating to this deal for your reference: The Verge; Business Insider; Barrons

 

 

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Photo of Dan Shores Dan Shores

Dan Shores is a partner at  Rothwell, Figg and founder of its Boston office. He serves companies operating in dynamic biotech and other markets building patent portfolios, litigating complex patent disputes, negotiating strategic collaborations, and conducting due diligence and landscape investigations. Dan has…

Dan Shores is a partner at  Rothwell, Figg and founder of its Boston office. He serves companies operating in dynamic biotech and other markets building patent portfolios, litigating complex patent disputes, negotiating strategic collaborations, and conducting due diligence and landscape investigations. Dan has served companies utilizing the following technologies (without limitation): mRNA; lipid nanoparticles; CAR-T; oligonucleotides; genetically engineered swine organs for xenotransplantation; artificial intelligence for drug discovery; small molecules; biologics, materials science, and numerous other technologies throughout his 20-year career. Dan has a B.S. in engineering with a specialization in materials science from the University of New Hampshire and a J.D. from the Georgetown University Law Center. He is a registered patent attorney licensed to practice before the United States Patent and Trademark Office, and is admitted to practice law in Massachusetts and in the District of Columbia. He is a member of the bars of the Supreme Court of the United States, United States Court of Appeals for the Federal Circuit, and United States District Court for the District of Massachusetts.