E-commerce company Ocado announced that it plans to buy two robotics companies, Kindred Systems and Haddington Dynamics, for a total estimated amount of $287 million, in an effort to grow its projects and speed up its deliveries.
This deal will lead to the development of the company’s performance, by taking advantage of robots to speed up the delivery of purchases selected by customers through the company’s smart platform.
Ocado has agreed to buy Kindred Systems, a company that designs and provides advanced bot-picking services for e-commerce and delivery, for $262 million. Kindred Systems is based in San Francisco and Toronto and has about 90 employees. They will join Ocado’s existing technology team.
The company is expected to generate more than $35 million in revenue in 2021, following Ocado’s plans to expand Kindred’s customer network and spread robots in the USA and globally.
Meanwhile, Ocado will buy Las Vegas-based Haddington Dynamics, the designer and manufacturer of robotic arms, for approximately $25 million.
The news came as Ocado raised its annual profit forecast by 50%, as it noticed an unprecedented rise in consumer demand, and their penchant for online shopping.
“We view bots to solve business problems as a great advantage for OSP customers and for fast-growing online retail and logistics businesses” said Tim Steiner, CEO of Ocado.
He also added, “Ocado has made significant progress in developing the machine learning technologies and engineering systems needed to activate the robotic-based selection system that is currently being developed at our Customer Service Centre.“, and he concluded “We want to accelerate the development of our systems, i.e. improving their speed, accuracy, product diversity and economic capacity“. Both deals are expected to close before the end of this year.