LG Makes Strategic Investment in Bear Robotics
Summary
SEOUL, South Korea, March 11, 2024 /PRNewswire/ -- LG Electronics (LG) is making a strategic investment move to expedite the advancement of its capabilities in service robotics, a key new business area of the company.LG has executed a stock purchase agreement to acquire a stake in Bear Robotics, a prominent Silicon Valley-based startup specializing in AI-driven autonomous service robots, through an investment of USD 60 million.Rather than seeking short-term returns, this strategic investment is aimed at bolstering LGs portfolio for long-term growth. From the deployment of guide robots at Incheon International Airport in 2017, it has progressively introduced tailored solutions for diverse commercial settings, encompassing delivery and disinfection functionalities. On a global scale, the market is anticipated to grow from USD 36.2 billion in 2021 to USD 103.3 billion by 2026.Last year, LG unveiled its Future Vision 2030, outlining its goal of evolving into a Smart Life Solution Company that can seamlessly connect and expand customer experiences across various domains, including home, commercial, mobility and virtual spaces. Aligned with this vision, LG aims to achieve the Triple Seven goal: an average growth rate and operating profit of seven percent or more, alongside an enterprise value translating into an EBITDA ratio of seven. "As the service robot market enters a period of growth, this equity investment will significantly contribute to securing a Winning Competitive-edge for the company," emphasized Lee Sam-soo, chief strategy officer at LG Electronics.