Hyundai Glovis acquires logistics automation SW company Altiall

South Korea's leading logistics company Hyundai Glovis Co. announced on Monday that it has signed a stock purchase agreement related to the acquisition of Altiall, a company that specializes in logistics automation solutions.

The strategy is aimed at expanding its market presence by acquiring a domestic specialized information technology company with expertise in logistics automation software.

Established in 2017, Altiall has secured competitiveness in the field of control system design, development, and implementation of logistics automation software, which is a core aspect of smart logistics solutions.

While applying automation software to existing logistics sites usually requires temporarily suspending logistics center operations, Altiall can rebuild and apply automation software without halting operations, improving operational productivity by up to 30%.

Hyundai Glovis, in its efforts to expand the smart logistics solution business, has been searching for acquisition targets since last year and ultimately partnered with Altiall. Recently, the due diligence process and negotiations regarding acquisition price and terms were completed, finalizing the stock purchase agreement.

The investment amount and detailed contract conditions will not be publicly disclosed as per the agreement between the two companies.

Smart logistics solutions refer to the application of various technologies such as artificial intelligence (AI), big data and robotics to improve logistics efficiency in all stages of warehousing, management, sorting and transportation.

Hyundai Glovis aims to achieve a leading position in the domestic logistics automation market by 2025 through synergies with Altiall. Specifically, it plans to focus on distribution logistics in industries such as food and beverage, apparel and biotech, as well as manufacturing logistics in industries such as secondary batteries and automobiles.

The company also made an equity investment in Boston Dynamics, a leading US robotics company, to strengthen its capabilities in automation equipment. It is closely collaborating with Boston Dynamics for the utilization of Stretch, a flexible autonomous mobile robot.

Furthermore, the company is expanding strategic partnerships with global automation equipment companies and plans to enter the global market after stabilizing its domestic business. It intends to demonstrate the competitiveness of its smart logistics solution business in global markets, including Southeast Asia and the Americas, leveraging its extensive logistics hubs consisting of 45 domestic and 95 global locations.

It has already initiated collaborations with Charoen Pokphand Group, Thailand's leading conglomerate, to develop urban micro-fulfillment centers, demonstrating its focus on capturing the Southeast Asian market.

Write to Nan-Sae Bin at binthere@hankyung.com