Hyundai Motor $1.1Bil Acquisition of Boston Dynamics

By Claire Zhong, Zen Suzuki (UPenn Wharton), Hippolyte Meuleau, Mikail Boudouda (Grenoble Ecole de Management)

 

Overview of the deal


Acquirer: Hyundai Motor Group

Target: Boston Dynamics

Implied Equity Value: $1.1bn

Total Transaction Size: $880m

Closed date: by June 2021

Target advisor: Unknown


Hyundai Motor Group has confirmed its acquisition of an 80% stake in Boston Dynamics as the remaining 20% remains under the control of SoftBank. Half of the transaction will be financed by Hyundai Motor and the remaining amount by subsidiaries of the group like the automotive parts manufacturer Hyundai Mobis Co. The transaction brings the value of Boston Dynamics to $1.1 billion. It takes place after the arrival of CEO Chun Euisun last October and is part of his long term vision to become a Smart Mobility Solution Provider and to develop the robotics sector that will represent 20% of its business by 2025 with the investment of $1 billion.

This deal will bring diverse synergies as both sides share a view of the transformational power of mobility.


"This transaction will combine the capabilities of Hyundai Motor Group and Boston Dynamics to spearhead innovation in future mobility." - Chung Euisun, Hyundai CEO

Company Details: (Acquirer - Hyundai Motor Group)


Based in Seoul, South Korea, Hyundai Motor Company manufactures, sells, and exports passenger cars, trucks, and commercial vehicles. The Company also sells various auto parts and operates auto repair service centers throughout South Korea. With more than 16,000 employees working in 40 facilities in 10 states, including its $1.8 billion Alabama auto plant, Hyundai Motor Group is a well established U.S. investor, manufacturer and innovator. Hyundai Motor provides financial services through its subsidiaries.


Founded in 2000, headquartered in Seoul, South Korea

CEO : Chung Eui-sun

Number of employees : 16,000

Market Cap: $38.99 bn (as of 24/12/2020) (for all conversion, 1KRW = 0,00091 $ as of 25/12/2020)

EV : $82.888bn (as of 25/12/2020)

LTM Revenue: $93.176bn

LTM EBITDA: $5.911bn

LTM EV/Revenue: 0.8895x

LTM EV/EBITDA: 14.02x


Company Details: (Target - Boston Dynamics)


Boston Dynamics is a company specialized in engineering and robotics. It was founded as a spin-off from the Massachusetts Institute of Technology in 1992. The company is known for developing dynamic robots, mainly for military use. However, it launched in 2019 its first marketable robot, Spot. But the company also develops other robots such as Handle, a robot designed for logistics, or Atlas, a humanoid robot. Among all its products, Boston Dynamics and Shark Robotics joined forces in 2