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Monday, March 19, 2012

Amazon to Acquire Kiva Systems, Inc for $775 Million

Amazon.com just announced an agreement to pay $775 million in cash to acquire Kiva Systems Inc., a maker of automation technology for fulfillment centers. Kiva makes robotic vehicles that zip around warehouses to deliver packages and other materials to workers, controlled by smart software designed to make distribution centers run more efficiently. Under the terms of the agreement, which has been approved by Kiva’s stockholders, Amazon will acquire all of the outstanding shares of Kiva for approximately $775 million in cash, as adjusted for the assumption of options and other items. Subject to various closing conditions, the acquisition is expected to close in the second quarter of 2012.
Kiva’s robots today are processing millions of orders a year in retailers’ warehouses across the United States, the UK, and Europe, quietly driving Kiva’s startling 80 percent annual growth. On the distant horizon is a plan to bring Kiva’s approach to the manufacturing sector.

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