Amazon Agrees To Acquire Kiva Systems For $775 Million

Amazon took a huge leap forward for its automation fulfillment centers on Monday when it announced plans to purchase Kiva Systems for a massive $775 million.

Kiva’s technology relies on robots which can transport goods to employees from all parts of a company’s warehouse.

One the items arrive at an employees work station they pick the items they need to package and then ship those items to the customer.

Kiva technology means Amazon will no longer need to rely on conveyor belt and carousel systems because robotic drive “bots” are able to life and reposition mobile inventory pods that contain the items needed.

The system will also allow completed shipments to be sent to loading docks to be placed on trucks.

By using the new robotic based system Amazon will be able to create a safer environment by eliminating the need for humans to grab packages in order to fulfill shipments. The new robotic feature will also be faster and cost less since robots don’t need to be paid while just several maintenance engineers can keep them operating as expected.

While Amazon has agreed to purchase the company for $775 million the deal is not expected to formally close until Q2 2012.

Now I just have to get over picturing an Amazon warehouse full of Roomba looking robots running around with my purchased goods.

Do you think Amazon was smart to turn its attention towards robot based “employees” at a time when the company is attempting to increase its order fulfillment center business?