Artificial Intelligence: FedEx To Buy 10% Of Robotic Solutions Provider Berkshire Grey

August 4, 2022 | Artificial Intelligence, News

FedEx has undertaken to buy robotic goods and services from Berkshire Grey worth $200 million.

Fedex (NYSE: FDX) and Berkshire Grey (NASDAQ: BGRY) have enhanced their strategic relationship to include the purchase by FedEx of a stake in Berkshire tied to a multi-year commitment to purchase its robotic order fulfilment systems. (GlobeNewswire)

Master system purchase agreement

The two companies will enter a master purchase agreement in 2022 for the procurement of Berkshire’s robotic automatic solutions by all FedEx operating companies across the globe.

The two companies are already engaged in deploying Berkshire Grey’s Robotic Product Sortation and Identification (RPSi) systems to robotically sort small packages that arrive daily and require distribution at FedEx locations.

In an allied transaction, Berkshire Grey has granted FedEx a warrant to purchase common stock subject to the ordering of or payment for at least $200 million of robotic goods and services by FedEx by end-2025. If this condition is fulfilled the warrant shall entitle FedEx to purchase 25 million shares of Berkshire.

That stake would be worth about $61 million based on current share valuation of Berkshire, or a stake of about 10%.

“Our growing relationship with Berkshire Grey for robotic automation is a direct response to the growth of e-commerce, which has accelerated the demand for reliable automated solutions throughout all stages of the supply chain,” said Rebecca Yeung, Corporate VP of Operations Science and Advanced Technology, FedEx. “FedEx believes that continued innovation and automation will improve efficiency, productivity and safety for its team members as they continue to keep the global supply chain moving.”

The agreement would help to further increase efficiencies across the FedEx enterprise using AI-enabled robotic automation.

Related Story: Indian Logistics Startup Delhivery Lands $100M From Fedex

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: Ripple Labs Eyeing Pieces Of Celsius In Bankruptcy Wreckage
August 10, 2022     Digital Assets, News

Ripple Labs, the blockchain payments company that created the XRP cryptocurrency, is interested in purchasing assets of Celsius Network, the crypto lender that was forced into bankruptcy amidst the meltdown…
FinTech: German Bank Nuri Files For Insolvency Amidst Macro Environment And Crypto Bear Market
August 10, 2022     Digital Assets, FinTech, News

Nuri, a digital banking platform and app, offered users crypto transactions as well as normal banking activities including a debit card. The firm announced it had filed for insolvency on…
Artificial Intelligence: AI Robot TX SCARA To Debut In 300 FamilyMart Stores In Japan
August 10, 2022     Artificial Intelligence, Latest News, News

Telexistence Inc., the Japanese robotics company, announced the launch of its TX SCARA restocking robots in 300 FamilyMart convenience stores in Japan later this month as part of its AI-based…–-Splash.png
Alternative Investments/Digital: GraniteShares Launches The First Coinbase Leveraged ETF
August 10, 2022     Alternative Investments, News

US ETF issuer GraniteShares, which first launched leveraged ETFs on single stocks in the UK in 2019, and now offers 106 such products across Europe, has listed a suite of…