SoftBank to Take 40% Stake in Norway’s AutoStore

Written By Warehouse Automation

SoftBank Group Corp. agreed to pay $2.8 billion for a 40% stake in Norwegian warehouse-automation company AutoStore, marking another big bet by the Japanese conglomerate on robot-enabled technology.

AutoStore is controlled by Thomas H. Lee Partners LP, while another private-equity firm, Sweden’s EQT AB, holds a minority stake. The deal values the company at $7.7 billion including debt, the companies said Monday.

SoftBank Chief Executive Masayoshi Son has been placing big bets on artificial intelligence and internet-connected devices for years, famously predicting in 2017 that super smart robots will outnumber humans within 30 years.

AutoStore’s technology makes it possible for warehouses to be operated almost entirely by robots. The company was founded in 1996 and pioneered a system of densely storing and accessing goods that is widely used today.

It employs giant cubes packed with bins. Robots, but not humans, can travel across the top of the cubes, digging out bins and delivering them to stations where workers assemble orders. It is especially useful in smaller warehouses, which are proliferating in a race to speed up the delivery of goods to consumers in cities.

The company, which expects to turn a profit in 2021, has benefited as manufacturers embrace technology as a way to cut costs and as e-commerce touches more parts of everyday life—whether shopping for clothes, groceries or household essentials. AutoStore’s customers include John Deere, Gucci and Texas Instruments Inc., according to the company’s website.

SoftBank has been building out its network of investments in global e-commerce and the related supply chain. It already has stakes in some of the world’s largest e-commerce companies, including China’s Alibaba Group Holding Ltd. and South Korea’s Coupang Inc.

Thomas H. Lee agreed to buy AutoStore from EQT in 2019, with EQT and other investors maintaining stakes. EQT had acquired AutoStore in 2017.

Under the deal, Thomas H. Lee would continue to be the majority shareholder and, along with SoftBank and EQT, have representation on the company’s board.

Press Release - (NEDRE VATS, Norway, April 5, 2021 /PRNewswire)

AutoStore, a leading global robotics and software company, today announced that SoftBank has entered into a definitive agreement to acquire 40% of AutoStore from funds affiliated with Thomas H. Lee Partners, L.P. ("THL") and EQT Private Equity ("EQT"), among other shareholders. THL will continue to be AutoStore's majority shareholder and THL, SoftBank and EQT will each have representatives on AutoStore's Board of Directors.

AutoStore currently has a global blue-chip customer base with more than 600 installations and 20,000 robots across 35 countries. Its automated storage and retrieval systems, coupled with its proprietary software, provide customers with high throughput, enhanced configurability and high levels of flexibility to serve the increasing demands of today's supply chains. AutoStore's innovative cubic design allows customers to either store four times the inventory in the same space, or all of their existing inventory in 25% of the space. AutoStore's solutions thus "redefine space," enabling it to serve a range of markets as diverse as e-commerce, grocery, industrial, and healthcare in any warehouse, retail location or other facility.

Masayoshi Son, Chairman & CEO of SoftBank Group Corp. said: "We view AutoStore as a foundational technology that enables rapid and cost-effective logistics for companies around the globe. We look forward to working with AutoStore to aggressively expand across end markets and geographies."

Karl Johan Lier, President & CEO of AutoStore, said: "We are delighted for SoftBank to join the AutoStore team as we continue on our journey to automate all commerce and deliver best-in-class automation solutions to our customers. Our world-class investor group brings exceptional experience from multiple geographies, and we are thrilled to have SoftBank's leadership and support on a global scale, but particularly with our vision for growth in Asia-Pacific."

Jim Carlisle, AutoStore's Chairman of the Board and Managing Director at THL, and Mike Kaczmarek, Managing Director at THL, said: "We believe the SoftBank partnership, in support of Karl Johan and the fantastic team at AutoStore, will help accelerate growth and unlock AutoStore's massive potential. We are thrilled to welcome SoftBank as our new partner and are very excited for what the future holds for AutoStore."

The transaction is subject to customary closing conditions and is expected to be completed this month, in April 2021.

About AutoStore

Founded in 1996, AutoStore is a robotics technology company that invented and continues to pioneer Cube Storage Automation, the densest storage technology. Its focus is to combine software and hardware with human capabilities to further develop the future of efficient warehouses. In all, more than 20,000 AutoStore robots are currently deployed in over 600 installations across 35 countries. Sales, designs, and installations are carried out by a network of qualified integrators who are its partners. Its headquarters are in Nedre Vats, Norway, and it has offices, warehouses and / or manufacturing sites in Norway, the USA, the UK, Poland, Germany, France, Korea, Japan, Spain, Italy and Austria. https://autostoresystem.com/

Warehouse Automation
Previous

JPMorgan to issue Instacart credit card that will reward frequent users
Next

XPO builds innovation hub into automated Nestle DC