LIG Nex1 to buy quadruped robot maker Ghost Robotics for $240 mn

LIG Nex1 Co., a South Korean weapons system developer, has agreed to buy a 60% stake in Ghost Robotics Corp (GRC), a Philadelphia-based robot developer, for $240 million to advance into the US defense industry, the company said on Friday.

LIG Nex1 will inject $142.2 million into the deal and Korea Investment Private Equity will fund the $96 million remainder via a special purchase company (SPC) to be established for the acquisition.

Korea Investment PE will sponsor the deal through the purchase of bonds to be issued by the SPC, based on Ghost Robotics shares.

Ghost Robotics is known for its VISION 60 quadruped robots, used for military, security, transport and disaster relief services.

Even after the deal closing scheduled for the end of June 2024, its current management team will continue to lead the company. Its executives and employees are also guaranteed their current working conditions and compensation packages.

Founded in 2015, Ghost Robotics is a spinout of an engineering lab at the University of Pennsylvania (UPenn).

The VISION 60 robot can walk, climb and swim in natural environments, where typical wheeled or tracked devices cannot operate efficiently. It is a modular robot, so its body and legs can be assembled or disassembled separately.

Made of aluminum alloy, it is equipped with front and rear-view cameras to scan colors, depth sensors and battery, with a maximum payload of 10 kilograms. It weighs 51kg with 95 centimeters in length and 68.5cm in height.

The four-legged robot is now being used for patrol at the Tyndall Air Force Base in Florida and has also been adopted by the British army.

Ghost Robotics has been up for grabs since 2022 when the then-chief executive and co-founder Jiren Narendra Parikh died. Its other co-founders are CEO Gavin Kenneally and Avik De, who have doctoral degrees in robotics from UPenn. 

Joining in the race for the management rights of the up-and-coming robotics company, LIG Nex1’s top management flew to Philadelphia where it touted itself as the most suitable buyer.

It presented its vision to grow it into a global company by combining LIG Nex1’s defense manufacturing capabilities with Ghost Robotics’ original technology.

The US company is seeking to commercialize the four-legged walking robot in other sectors.

Ghost Robotics is forecast to post more than $40 million in sales this year. It is the only robotics company in the world to be making a profit.

With the acquisition, LIG Nex1 will incorporate artificial intelligence, the Internet of Things (IoT) and autonomous driving technologies into its weapons systems.

According to Boston Consulting Group, the market for professional service robots, including quadruped robots, is expected to reach $90 billion-$170 billion by 2030, outstripping an estimated $40 billion-$50 billion for the industrial robot market by that year. 

Write to Jun-Ho Cha at chacha@hankyung.com
 


Yeonhee Kim edited this article.