Hyundai Motor Group Pursues Acquisition of US Robotics Specialist Boston Dynamics

Acquisition Discussion Scheduled at Hyundai Mobis and Hyundai Glovis Board Meetings on the 11th

Boston Dynamics robot dog 'Spot' (EPA=Yonhap News)

[Asia Economy Reporter Kim Ji-hee] Hyundai Motor Group is set to acquire Boston Dynamics, a U.S.-based robotics company. If this acquisition is finalized, it will mark the first major merger and acquisition (M&A) since Chung Eui-sun took office as chairman of Hyundai Motor Group.

According to investment banking (IB) industry sources on the 10th, Hyundai Motor Group held a board meeting for Hyundai Motor Company on the same day, and plans to hold board meetings for Hyundai Mobis and Hyundai Glovis the following day to discuss the acquisition of Boston Dynamics. The acquisition amount is reported to be between 800 billion and 900 billion KRW, which is less than the previously reported 1 billion USD (approximately 1.135 trillion KRW). The acquisition is expected to proceed with Hyundai Motor, Hyundai Mobis, and Hyundai Glovis each bearing a portion of the cost and sharing equity stakes.

Boston Dynamics is known for its robotic dog "Spot." The company was spun off from the Massachusetts Institute of Technology (MIT) in 1992, acquired by Google in 2013, and sold to SoftBank in 2017. "Spot," first introduced in 2015, is equipped with a 360-degree camera and can run at a speed of 1.58 meters per second or climb stairs. However, as Boston Dynamics is primarily a research-focused organization, despite releasing innovative robots beyond Spot, it has not achieved significant commercial success.

Hyundai Motor Group plans to enhance its competitiveness in the robotics sector, one of its core future businesses, based on this acquisition. In 2018, Hyundai Motor Group selected robotics and artificial intelligence as one of its five key future innovation growth areas.

At a town hall meeting held last October, Chairman Chung directly stated, "In the future, automobiles will account for 50%, personal aerial vehicles (PAV) 30%, and robotics 20%," adding, "Within that, we will transform into a company primarily providing services."

Meanwhile, in January last year at CES 2019, the consumer electronics and IT exhibition held in the U.S., Hyundai Motor unveiled the concept car "Elevate," a vehicle that walks using four robotic legs with wheels.