French warehouse robotics company Balyo is going to obtain a huge investment from tech giant Amazon. The funding will escalate Balyo’s operational capacity and sales of autonomous forklift trucks. Balyo has announced to have signed an agreement with Amazon.
Pursuant to the agreement signed, Amazon will receive free stock warrants which will vest based on the tech giant’s purchase of Balyo-enabled products.
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The full number of stock warrants, representing up to 29% of Balyo’s share capital and voting rights (before dilution of existing securities giving access to share capital as of 31 December 2018), would become exercisable according to Amazon’s decision if they order up to € 300 million of Balyo-enabled products. The issuance of the warrants will be submitted for the approval at an Extraordinary General Meeting of Balyo’s shareholders.
Transformation of forklift trucks into intelligent robots
Balyo converts a standard forklift truck into standalone intelligent robots with its breakthrough proprietary Driven by Balyo technology. The company has incorporated a Geo-guidance navigation system in vehicles enabling autonomous movements inside buildings.
What’s the Amazon – Balyo deal?
Amazon’s prime focus remains to be, the automation of warehouses facilitating speedy delivery of its e-commerce products. For this, the company acquired robotics firm Kiva Systems in 2012, in a deal of $775 million.
Now, as per the fresh accord, Amazon is expected to be given free stock warrants of up to the price equivalent to 29 percent capital of Balyo. The estimation of the deal is about $346 million which is most likely to be compensated by the hi-tech robotic products of Balyo. Further, the product dispatch volume will depend upon Amazon’s need.
Balyo had raised €10 million in previous funding and maintains strategic agreements with logistical operators including Kion Group AG (Linde Material Handling’s parent company) and Hyster-Yale Group.
With employee strength of over 100, Balyo maintains workshops in Paris, Boston and Xiamen. As per the company’s expectation, the current financial year’s revenue will be €23.3 million which is a 40% leap over the last year.
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.
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