Hyundai has acquired a controlling interest in industrial robotics specialist Boston Dynamics from the SoftBank Group. The Korean car maker plans to use the acquisition to create a value chain ranging from robot component manufacturing to smart logistics. The deal values Boston Dynamics at $1.1 billion. SoftBank will continue its involvement with Boston Dynamics in a new partnership with Hyundai.

Boston Dynamics produces mobile robots with advanced mobility, dexterity and intelligence, enabling automation in difficult, dangerous, or unstructured environments. The company launched sales of its first commercial robot Spot in June of 2020 and has since sold hundreds of robots in a variety of industries, such as power utilities, construction, manufacturing, oil and gas, and mining. Boston Dynamics plans to expand the Spot product line early next year with an enterprise version of the robot with greater levels of autonomy and remote inspection capabilities, and the release of a robotic arm, planned as a breakthrough in mobile manipulation.

Head-quartered in Seoul, South Korea, Hyundai Motor Group is a global automotive group operating in the automotive, steel, construction, machine tools, logistics, and other industries. In the United States, Hyundai employs more than 16,000 people working in 40 facilities across 10 states, including a $1.8 billion auto manufacturing plant in Alabama.

Hyundai Motor Group’s decision to acquire Boston Dynamics is based on its growth potential and wide range of capabilities. Boston Dynamics possesses multiple key technologies for high-performance robots equipped with perception, navigation, and intelligence. Also, Boston Dynamics is located in Boston and Silicon Valley, both major robot cluster regions, which is advantageous to sourcing key robotics talents and collaborating with competent partners.

Under the agreement, Hyundai Motor Group will hold an approximately 80% stake in Boston Dynamics and SoftBank, through one of its affiliates, will retain an approximately 20% stake in Boston Dynamics after the closing of the transaction. Hyundai Motor Group’s affiliates – Hyundai Motor Co., Hyundai Mobis Co. and Hyundai Glovis Co. – and Hyundai Motor Group Chairman Euisun Chung respectively participated in the acquisition.

In a statement, Hyundai said that the acquisition was part of a strategy of investing in future technologies, including in fields such as connectivity, smart factories, advanced materials, artificial intelligence (AI), and robots.

The deal is expected to allow Hyundai Motor Group and Boston Dynamics to leverage each other’s respective strengths in manufacturing, logistics, construction and automation.

“We are delighted to have Boston Dynamics, a world leader in mobile robots, join the Hyundai team. This transaction will unite capabilities of Hyundai Motor Group and Boston Dynamics to spearhead innovation in future mobility. The synergies created by our union offer exciting new pathways for our companies to realise our goal – providing free and safe movement and higher plane of life experiences for humanity,” said Euisun Chung, Chairman of Hyundai Motor Group. “We will also contribute to the society by enhancing its safety, security, public health amid global trends of aging society and digital transformation.”

Masayoshi Son, Representative Director, Corporate Officer, Chairman & CEO of SoftBank Group said, “Boston Dynamics is at the heart of smart robotics. We are thrilled to partner with Hyundai, one of the world’s leading global mobility companies, to accelerate the company’s path to commercialisation. Boston Dynamics has a very bright future and we remain invested in the company’s success.”

“Boston Dynamics’ commercial business has grown rapidly as we’ve brought to market the first robot that can automate repetitive and dangerous tasks in workplaces designed for human-level mobility. We and Hyundai share a view of the transformational power of mobility and look forward to working together to accelerate our plans to enable the world with cutting edge automation, and to continue to solve the world’s hardest robotics challenges for our customers,” said Robert Playter, CEO of Boston Dynamics.