Board Approves Additional 30% Stake Acquisition
Possesses World-Class AI Autonomous Robot Technology
Synergy Expected in Commercial Robot Business
"Firm Commitment to Fostering a New Growth Engine"
LG Electronics is securing management rights of Bear Robotics, a U.S.-based company that develops AI-powered commercial autonomous robots, and is making a full-scale entry into the robot business. It expects synergy effects not only in commercial robots but also in the development of home robots.
LG Electronics has secured management rights of 'Bear Robotics,' a company that develops AI-based commercial autonomous robots, and is officially entering the robot business as a future growth engine. The photo shows 'Servi Plus,' an AI autonomous delivery robot created by Bear Robotics. Photo by LG Electronics
LG Electronics announced on the 24th that it recently held a board meeting and resolved to exercise a call option to acquire an additional 30% stake in Bear Robotics.
Bear Robotics, founded in 2017 in Silicon Valley, USA, develops AI-based commercial autonomous robots. It is recognized for its world-class technology in areas such as building robot software (SW) platforms, swarm control that moves multiple robots along optimized routes, and cloud control solutions.
In March last year, LG Electronics invested $60 million (approximately 80 billion KRW at the time) to acquire a 21% stake in Bear Robotics and signed a call option contract to acquire up to an additional 30% stake. The call option has been exercised about 10 months later. Once the related procedures are completed, LG Electronics will hold 51% of Bear Robotics’ shares, securing management rights and incorporating it as a subsidiary.
Through this decision, LG Electronics plans to promote the entire commercial robot business centered on the ‘CLOi Robot’ together with Bear Robotics. The current management of Bear Robotics, including CEO Ha Jung-woo, will remain in their positions to ensure continuity of existing business. LG Electronics also plans to have Bear Robotics’ management participate as board members to create synergy in the commercial robot business.
LG Electronics expects that the acquisition of Bear Robotics will also strengthen its home robot business. The home robot business is overseen by the HS Business Division, which has expertise in home appliances technology. A mobile AI home hub (Project Q9) is scheduled to be launched within this year. Lee Sam-soo, Vice President (CSO) of LG Electronics, said, "This additional investment shows a firm commitment to growing robots, a ‘clear future,’ as a new growth engine," adding, "We will continue to innovate across all robot business sectors including commercial, industrial, and home robots."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
