ST Engineering acquires robotics firm Aethon

It will be merged with VT Robotics.

Singapore Technologies Engineering Ltd (ST Engineering) announced that Vision Technologies Land Systems, Inc. (VTLS), and its wholly-owned subsidiary, VT Robotics, Inc. (VT Robotics) have entered into a definitive agreement (Merger Agreement) with Aethon, Inc. (Aethon or the Company) for the acquisition of 100% interest in Aethon. This acquisition will be carried out by way of a merger (Proposed Transaction). VT Robotics is a special purpose vehicle newly incorporated for the Proposed Transaction.

VT Robotics and Aethon will be merged, with Aethon being the surviving entity. Upon the completion of the Proposed Transaction, Aethon will be a subsidiary of VTLS, and will be part of the Group’s Land Systems sector which is led by Singapore Technologies Kinetics Ltd (ST Kinetics).

Under the Merger Agreement, a consideration based on an enterprise value of US$36m (approximately $50m) will be payable by VTLS, subject to post closing adjustments. The consideration will be satisfied in cash on closing, and was arrived at after negotiations between the parties, taking into account Aethon’s current financial performance and future growth prospects.

ST Engineering has identified several growth areas in which it will invest to grow or scale up its capabilities and technologies. The acquisition of Aethon, a leading provider of autonomous mobile robots for material transportation and delivery, is in line with its focus to strengthen the Group’s robotics business.

Aethon complements ST Kinetics’ robotics technologies to better serve the varying needs of customers in both the indoor and outdoor environments. Going forward, Aethon will leverage ST Kinetics’ technological capabilities and market access to develop the Asia Pacific markets for the industrial, healthcare and hospitality segments. Aethon will further consolidate its leading position in the US healthcare segment, expand its footprint in the industrial and hospitality segments and concurrently penetrate the European market.