Amazon to Acquire of Warehouse Robots Maker for $775 Million

Sarah Kessler

Amazon will acquire robotics firm Kiva Systems for $755 million in cash, the Internet retailer announced Monday.

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The firm makes robots that can navigate fulfillment warehouse floors using barcode stickers, fetch an item to be packed and deliver it to an appropriate worker.

"By making inventory items move, instead of the workers, they can fulfill orders faster," explains a Kiva Systems YouTube video.

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Saving a little time can save a lot of money for Amazon, which spent about $4 billion in outbound shipping costs in 2011.

“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,” said Amazon VP of Global Customer Fulfillment Dave Clark in a statement.

Kiva Systems first became profitable in 2011, according to Fast Company. Last year alone, it added 24 customers, including Toys "R" Us and Timberland.

The acquisition is expected to close in the second quarter of 2012.

This story originally published on Mashable here.