As per agreement, Amazon will receive free stock warrants up to 29 per cent of Balyo’s capital based on orders placed for the company’s products.
French warehouse robotics firm Balyo has entered into an agreement with Amazon to sell its self-driving forklift trucks, which could cut costs and speed up deliveries of e-commerce major.
Currently, Amazon uses robots developed by Kiva Systems, the company it acquired in 2012 for $775 million.
As per the terms of the deal, Amazon will receive free stock warrants up to 29 per cent of Balyo’s capital based on orders placed for the company’s products.
The full number of stock warrants, representing up to 29 per cent of Balyo’s share capital and voting rights, would become exercisable to Amazon’s if it orders up to EUR 300 million of Balyo-enabled products – Balyo said.
Commenting on the development, Fabien Bardinet, Chairman and Chief Executive Officer, Balyo, stated, “This agreement … 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.”
The agreement also gives Amazon the right to appoint an observer at Balyo’s board of directors.
Balyo is expecting its 2018 revenue to be around 23.3 million euros, a 40 percent increment over the previous year.