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Amazon Buys Kiva Systems for $775M

Robotic technology to assist Amazon's fulfillment centers.

In addition to serving its customers with the lowest price on products ranging from appliances to watches, Amazon also applies technological innovations in order to distribute its products at a fast pace.

To that end, Amazon has announced its acquisition of Kiva Systems Inc., a supplier of material handling technology to e-commerce retailers that include Gap, Staples, Toys R Us and others. Kiva’s robotic technology allows distribution centers to work more efficiently in receiving, picking and shipping.

“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,” says Dave Clark, Amazon’s vice president of global customer fulfillment.

The $775-million cash acquisition is expected to close in the second quarter of the year and Kiva’s headquarters will remain in North Reading, MA.

About the author

Sarah Brown
Sarah Brown is a freelance writer who writes about e-commerce and small businesses. She recently graduated from Chico State with a journalism degree and is also a budding online entrepreneur, having launched two Web businesses and her own line of handmade products. Opinions expressed here may not be shared by The Online Seller and/or its principals.

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