ing innovator of material handling technology, after testing and using for past years, Amazon has finally has reached an agreement to acquire it. This acquisition gives further advantage to amazon in reducing cost on the labour requirements in the supply chain process- receiving to picking to shipping.
Question remains to be answered what happens to competitors of Amazon who have been using this technology, whether they would be allowed to use the technology. We can keep guessing.
Dave Clark, vice president,Amazon.com
“Amazon has long used automation in its fulfillment centers, and Kiva’s technology is another way to improve productivity by bringing the products directly to employees to pick, pack and stow,”
Mick Mountz, CEO and founder of Kiva Systems
“For the past ten years, the Kiva team has been focused on creating innovative material handling technologies,”
Following the acquisition, Kiva Systems’ headquarters will remain in North Reading, Massachusetts. Amazon will acquire all of the outstanding shares of Kiva for approximately $775 million in cash, as adjusted for the assumption of options and other items. Subject to various closing conditions, the acquisition is expected to close in the second quarter of 2012.
