South Korean defense company LIG Nex1 has acquired a 60% stake in Ghost Robotics, a U.S. maker of four-legged robots, in a deal worth $240 million. The acquisition, completed on Saturday, valued Ghost Robotics at about $400 million. The transaction was funded mostly by LIG Nex1, with the remainder coming from Korea Investment Private Equity, whose portfolio includes companies like SK On and EcoPro. Ghost Robotics, founded in 2015, develops quadruped robots for defense and enterprise applications, with its products being used by military and government agencies in various countries.
The investment in Ghost Robotics is seen as a significant move for LIG Nex1, as it aligns with the increasing focus on unmanned and automation technologies in the military sector. Analysts believe that the growth of the robotics industry is being driven by factors such as inflation-induced wage hikes and a reluctance among workers to perform hazardous tasks. The acquisition of Ghost Robotics is expected to strengthen LIG Nex1’s position in the defense sector and provide new opportunities for growth.
LIG Nex1 is the defense arm of LIG Group, a conglomerate that spun off from LG in 1999. The group is chaired by Koo Bon-sang, a distant relative of LG Group chairman Koo Kwang-mo. LIG Group’s founder, Koo Chul-hwoi, is the younger brother of LG Group’s founder, Koo In-hwoi. The acquisition of Ghost Robotics is part of LIG Nex1’s strategy to expand its portfolio in the robotics industry, which is seen as a key growth area in response to labor shortages in South Korea.
The robotics sector in South Korea has seen increased interest from major companies in recent years due to the country’s low birth rates and aging population. Companies like Samsung Electronics and Hyundai Motor have made significant investments in local and international robotics firms. Samsung Electronics acquired a stake in Rainbow Robotics, while Hyundai Motor acquired Boston Dynamics in a deal worth $880 million. These investments highlight the growing importance of robotics in various industries and the need for advanced automation solutions.
Ghost Robotics, which manufactures quadruped robots similar to Boston Dynamics, has faced legal challenges from the latter for alleged patent infringement. Ghost Robotics has denied the claims, stating that the lawsuits are baseless and an attempt to hinder their progress. Despite the legal issues, Ghost Robotics continues to develop innovative robotics solutions for defense and enterprise applications. The acquisition by LIG Nex1 will likely provide them with additional resources to further enhance their technology and expand their market reach.
Overall, the acquisition of Ghost Robotics by LIG Nex1 marks a significant development in the robotics industry, particularly in the defense sector. With the increasing demand for unmanned and automation technologies, companies like LIG Nex1 are positioning themselves to capitalize on the growing market opportunities. The collaboration between South Korean and U.S. companies in the robotics space is expected to drive innovation and create new possibilities for addressing global challenges in defense and security.
