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

August 4, 2022 | Artificial Intelligence, News
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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

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