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.
Balyo,a warehouse robotics firm based in France has recently signed an agreement with Amazon to sell its self-driving forklift trucks, which could cut costs and accelerate deliveries of e-commerce major.
At present, Amazon uses robots developed by Kiva Systems, which was acquired in 2012 for $775 million.
As per 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.
As per the official source,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.
Fabien Bardinet, Chairman and Chief Executive Officer, Balyo, stated that this agreement represents an unprecedented opportunity for Balyo to grow its business and supports the soundness of their investments over the years to perfect their robotic solutions.
It 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.