SINGAPORE (July 18): UOB Kay Hian is positive on Singapore Technologies (ST) Engineering’s acquisition of a 100% stake in US robotics company Aethon Inc., which was announced yesterday and will be at a consideration sum based on an enterprise value of US$36 million ($50 million).
See: ST Engineering acquires US robotics company Aethon valued at $50 mil
In a Tuesday note, analysts K Ajith and Sophie Leong note that the acquired company was said to be in negative equity – but with its purchase by ST Engineering, Aethon now has “relatively advanced robotics capability for a low price”.
They also highlight how ST Engineering has indicated that post the acquisition, Aethon will leverage ST Kinetics’ technological capabilities and market access to "develop the Asia Pacific markets for the industrial, healthcare and hospitality segments", while strengthening its position in the US healthcare segment and penetrating the European market.
Based in Pittsburgh, US, Aethon provides smart autonomous mobile robots (TUG robots) for material transportation and delivery, which help automate intra-logistics in industrial, healthcare, hospitality and other environments.
The robots are used to deliver goods, materials, meals, medication and other supplies up to a load of 635 kg per robot, according to the company.
As at 11.48am, shares of ST Engineering are up by 2 cents at $3.71.
