Hyundai Motor acquires Boston Dynamics from SoftBank for almost $1 bn

Hyundai Motor acquires Boston Dynamics from SoftBank for almost /> bn
Chae-Yeon Kim and Sang-eun Lucia Lee 2
Dec 09, 2020 (Gmt+09:00) why29@hankyung.com
Future Mobility
Hyundai Motor Co. has decided to acquire the US robotics firm Boston Dynamics Inc. from SoftBank Group for slightly less than 1 trillion won ($921 million) and will finalize the acquisition at its Dec. 10 board meeting, according to sources with knowledge of the matter on Dec. 8.

The acquisition will become the first buyout deal for Chung Euisun as Hyundai Motor Group’s chairman since he assumed the chairmanship last October, accelerating the group’s push into the future mobility market. Hyundai has chosen robotics as one of its new growth engines, alongside electric vehicles and hydrogen fuel cell cars.

Hyundai Motor will finance about half of the acquisition price, or more than 400 billion won, with its affiliates including auto parts maker Hyundai Mobis Co. paying for the remainder, the sources told the Market Insight, The Korea Economic Daily's capital market news outlet.

Boston Dynamics is famous for technologically advanced but unprofitable machines such as Spot, a maneuverable dog-like robot, while Hyundai Motor has focused on wheeled robots intended for factory use.

Spot, unveiled in 2015, is a four-legged robot that can trot, climb stairs and open doors.

Boston Dynamics has also introduced the humanoid robot Atlas and the bird-like mobile robot Handle designed for logistics services.

The US robot maker was originally spun off from the Massachusetts Institute of Technology in 1992, acquired by Google owner Alphabet in 2014 and then sold to SoftBank in 2017.

Last month, sources had said that Hyundai Motor has hired Goldman Sachs as its adviser and top Korean law firm Kim & Chang as the legal counsel in its attempt to acquire Boston Dynamics.

Hyundai Motor has shown growing interest in automated vehicle technology and robotics over the past years, and said it will invest up to 1.5 trillion won ($1.4 billion) in robotics by 2025.

Since Chairman Chung set up Hyundai Robotics within the group in 2018 as its then executive vice chairman, the automotive group invested in the autonomous vehicle startup 42dot and Realtime Robotics, a Boston-based startup, last year.

Chung said in a town hall meeting with group employees in October that robotics will account for 20% of its future business, with automobiles taking up half of its sales, followed by urban air mobility (UAM) at 30%.

In a new year’s speech early this year, Chung said the group will invest 100 trillion won in the future mobility, including personal air vehicles, robotics and last-mile delivery robots, as well as existing engine vehicles, signaling its intent to pursue additional acquisitions of mobility-related companies.

(Updated on Dec. 9 to add in the first paragraph that Hyundai Motor will finalize the purchase at a Dec. 10 board meeting.)

Write to Chae-Yeon Kim and Sang-eun Lucia Lee at why29@hankyung.com
Yeonhee Kim edited this article.

Hyundai Motor to unveil automated remote valet parking cars in 2024

Hyundai Motor to unveil automated remote valet parking cars in 2024

The Hyundai 45 EV Concept previews the IONIQ 5 Maneuvering in and out of tight parking spaces is troublesome for some drivers, both men and women alike. Whatever your take on parking is, Hyundai Motor Co. is about to make the tricky part of driving much easier.Hyundai, South Korea’s large

Hyundai rolls out customer-centric luxury SUV GV70

Hyundai rolls out customer-centric luxury SUV GV70

Hyundai Motor unveils its Genesis SUV GV70 Dec. 8 Hyundai Motor Co. has unveiled its brand-new Genesis sport utility vehicle (SUV) model GV70, the latest urban midsize SUV from the South Korean automaker's luxury car brand.The reveal premiered on Dec. 8 via a livestream showcase, The GV70: A Tr

Hyundai mulls downsizing skyscraper for future mobility

Hyundai mulls downsizing skyscraper for future mobility

Illustrated rendition of Hyundai global business center set for completion in 2026 Hyundai Motor Co. is at a crossroads over the construction of its $3.4 billion global business center, deliberating on whether to downsize the 105-story building to increase investment in future mobility or to ca

Hyundai Motor unveils all-new electric vehicle platform E-GMP

Hyundai Motor unveils all-new electric vehicle platform E-GMP

The Hyundai 45 EV Concept previews the IONIQ 5 Hyundai Motor Co. has unveiled a new platform, which will underpin its electric vehicles in coming years as South Korea’s largest automotive group aims to grab a greater share of the rapidly growing EV market.Taking the wraps off the platform

Hyundai Motor, INEOS team up to explore growth in hydrogen economy

Hyundai Motor, INEOS team up to explore growth in hydrogen economy

South Korea’s largest automaker Hyundai Motor Co. and London-based chemicals company INEOS have teamed up to explore new business opportunities in the global hydrogen economy.Hyundai Motor said On Nov. 23 that the two companies signed a memorandum of understanding on Nov. 20 to “jointly

Hyundai Motor hires Goldman as adviser for Boston Dynamics acquisition

Hyundai Motor hires Goldman as adviser for Boston Dynamics acquisition

Hyundai Motor Co. has hired Goldman Sachs Group Inc. as its adviser in its attempt to acquire Boston Dynamics Inc., signaling the seriousness of the South Korean automaker's bid for the US robotics firm.Hyundai Motor has also picked Kim & Chang, Korea’s leading law firm, as its legal couns

Hyundai Motor, SP Group to expand EV battery business in Singapore

Hyundai Motor, SP Group to expand EV battery business in Singapore

Hyundai Motor Co. is seeking to expand its electrice vehicle battery business in Southeast Asia in cooperation with Singapore’s state-run utility firm SP Group, as the automaker steps up its future mobility efforts.South Korea’s largest automaker said on Nov. 12 that it has signed a busi

Hyundai Motor may buy Boston Dynamics to bolster robotics business

Hyundai Motor may buy Boston Dynamics to bolster robotics business

Hyundai Motor Co. may acquire Boston Dynamics Inc., a US-based robotics company, from Japan’s SoftBank Group Corp. in a deal worth as much as $1 billion, as the South Korean automaker increases investments in future mobility.The potential deal would give Korea’s largest automaker control

Hyundai Motor to install Nvidia’s in-vehicle system in entire fleet from 2022

Hyundai Motor to install Nvidia’s in-vehicle system in entire fleet from 2022

Hyundai Motor Group will use US chipmaker Nvidia Corp.’s in-vehicle information and entertainment system for its entire fleet of Hyundai Motor Co. and Kia Motors Corp. models, as well as its standalone luxury brand Genesis, from 2022.The automotive group said on Nov. 10 that both sides have al