LG Electronics, based in Englewood Cliffs, on Friday said that it has agreed to acquire an additional 30% stake in Bear Robotics, a California-based startup it backed with an initial $60 million investment in March 2024, which secured LG a 21 percent stake and a call option agreement for up to an additional 30 percent stake.
Upon completion of the call option exercise, LG will hold a controlling 51 percent stake in Bear Robotics, effectively incorporating it as a subsidiary.
This acquisition aligns with LG’s strategy to strengthen its presence in the robotics sector, a key growth area for the company. Concurrently, LG intends to leverage its AI and manufacturing expertise to reinforce its home and industrial robot businesses.
The key management team of Bear Robotics, including CEO John Ha, will remain in place to ensure stable business continuity and will continue to focus on creating synergies in LG’s commercial robot business.
Founded in 2017, Bear Robotics has gained recognition for its AI-powered indoor delivery robots, catering to markets in the United States, South Korea and Japan. The company is noted for its expertise in distributed multi-robot control, remote fleet management system and AI-powered robot platform.
In the realm of industrial robots, a cornerstone of LG’s Smart Factory business, the company’s Production engineering Research Institute is spearheading substantial revenue growth through the integration of AI and digital transformation. A key example is the “Autonomous Vertical Articulated Robot,” which employs sensors including cameras, radar and LiDAR to perceive its surroundings, navigate efficiently, supply materials and execute tasks such as assembly and defect inspection with its robotic arm. This innovation facilitates seamless automation across a range of operations.
“This additional investment underscores our dedication to positioning robots as a pivotal growth engine for the company, reflecting our belief in their inevitable role in the future,” Lee Sam-soo, chief strategy officer at LG Electronics, said. “We will persist in driving innovation across all sectors of robotics, encompassing commercial, industrial and home applications.”