Zebra Technologies is set to acquire Fetch Robotics

Zebra Technologies, a provider of enterprise data capture, mobile computing, and visibility solutions, announced earlier this month that it intends to acquire Fetch Robotics, a provider of autonomous mobile robots (AMRs). Fetch’s AMRs are used for optimized picking in fulfillment centers and distribution centers, just-in-time material delivery in manufacturing facilities and automating manual material movement in any facility.

According to Zebra Technolologies, Fetch features the largest portfolio of AMRs in the industry and offers seamless integration with warehouse and manufacturing systems without the need for changes to facilities or infrastructure. Fetch Robotics’ AMRs help reduce the impact of labor shortages by improving throughput, efficiency and productivity while working alongside people in fulfillment, distribution and manufacturing environments.

“The acquisition of Fetch Robotics will accelerate our Enterprise Asset Intelligence vision and growth in intelligent industrial automation by embracing new modes of empowering workflows and helping our customers operate more efficiently in increasingly automated, data-powered environments,” said Anders Gustafsson, Chief Executive Officer of Zebra Technologies. “This move will also extend our ongoing commitment to optimize the supply chain from the point of production to the point of consumption. We are excited to welcome the Fetch team to the Zebra family.”

In addition to Fetch Robotics’ broad portfolio of AMRs, it offers cloud-based Enterprise Software, FetchCore as the foundational platform for deploying and fully integrating a broad range of automated workflows into manufacturing and warehouse operations and providing unique insights into facilities through machine learning on AMR sensor data. Additionally, Fetch has a function called Workflow Builder, a drag and drop workflow development studio, to enable rapid deployment of automation workflows. Zebra Technologies sees the acquisition as furthering its vision to bring advanced robotics solutions to customers.

Zebra’s focus on robotics automation combines workflow solutions for human workers, including current Zebra offerings such as FulfillmentEdge and SmartSight with Fetch Robotics’ solutions. The result will provide an innovative offering that drives greater efficiencies and higher ROI through better orchestration of technology and people, according to the companies.

“The Fetch team is excited to join Zebra and accelerate the adoption of flexible automation through AMRs and our cloud-based robotics platform. Together we have the right team with the right technology to provide end-to-end solutions that solve real customer problems,” said Melonee Wise, CEO of Fetch Robotics. “By helping customers dynamically optimize and holistically orchestrate their fulfillment, distribution, and manufacturing operations, together we help enable their ability to stay ahead of growing demand, minimize delivery times and address shrinking labor pools.”

Fetch has made strong progress as a Zebra Ventures portfolio company. In its early-rapid growth phase, this high gross-margin profile business is generating annualized run-rate sales of approximately $10 million. Zebra’s go-to-market footprint and vertical market expertise is expected to drive synergies with Fetch as part of Zebra.

“Our goal is to give robots and people the opportunity to do their very best work,” said Bill Burns, Chief Product & Solutions Officer, Zebra Technologies. “This acquisition is a continuation of what we expect to be a series of innovations that reflect our commitment to creating solutions that help our customers improve their operations through robotics.”

Zebra expects to fund the $290 million purchase price – for the 95% of the business it does not already own – with cash on hand. Zebra’s venture arm had previously invested $15 million in Fetch a couple of years ago, which puts the effective value of the acquisition at $305 million. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the third quarter of 2021.

In an interview, Wise noted that she is staying on with Zebra after the acquisition. Wise added that already, the companies have a strong working partnership in which they ensure that their products, such as Fetch’s AMRs and Zebra’s mobile devices, work well together in AMR workflows. Going forward, the combined company will be in a better position to deliver an integrated approach between Fetch’s robotics software and Zebra’s software, but at the same time, Fetch will also continue to offer AMR solutions that appeal to companies who want to rapidly deploy AMRs without integration to another software system.

For example, said Wise, using mobile robots to transport full dunnage containers away from work areas is an popular AMR application that doesn’t require integration to another software system. Such solutions will continue to be offered, Wise said, though as part of Zebra, coming up with an enhanced, integrated approach will also be a focus. “Some customers just want to get started, get a flavor for the technology, and achieve an easy win,” Wise said. “We’re really tackling it at both ends [of the spectrum] ... from completely unintegrated to fully integrated [with Zebra’s software suite].”

Jim Lawton, VP and General Manager, Zebra Technologies, added that an important driver for the acquisition is that Zebra’s customers are looking for integrated solutions to manage busy fulfillment centers, without having to hire consultants or make special engineering efforts to link robotics with their other systems. With Fetch as part of Zebra, Lawton sees strong customer value in having the FulfillmentEdge solution and Fetch’s platform integrated to support key workflows that involve both robotic and human resources. “I think we are going to see more and more progress toward the digital warehouse as providers take on the responsibility of figuring out how these technologies can come together to solve problems,” said Lawton.