Amazon Inc. (AMZN - Get Report) agreed to a seven-year deal with French robotic solutions company Balyo for the company to supply Amazon with self-driving forklift trucks as the retail giant looks to cut costs at its delivery centers and speed up deliveries.
Balyo's navigation system turns forklifts into self-driving vehicles.
In return for purchasing Balyo products, Amazon will receive stock warrants representing up to 29% of Balyo's capital, according to a Reuters story posted on Balyo's website. The full 29% would be exercised if Amazon orders up to 300 million euros ($346 million) of Balyo-enabled products.
"This agreement ... represents an unprecedented opportunity for Balyo to grow its business and supports the soundness of our investments over the years to perfect our robotic solutions," Balyo Chief Executive Fabien Bardinet said on Thursday.
Amazon currently uses robots developed by Kiva Systems after acquiring the company for $775 million in 2012.
Shares of Amazon are down 0.87% premarket Thursday.