Things have been looking bad for Franka Emika recently: The robotics company founded in 2016 had to file for insolvency in August of this year after it was unable to secure follow-up financing. As the industry service Automation practice reported that this happened due to differences at the shareholder level. At that time, it was said that Franka Emika's order books were full and the provisional insolvency administrator was confident that investors would be found to continue the business.
At the same time, the Munich I public prosecutor's office is investigating the startup for subsidy fraud, as first reported by the Bavarian Broadcasting reported. The company is accused of having employees continue to work full-time despite receiving short-time work benefits.
Agile Robots plans to invest in Franka Emika’s growth
Now takes over Agile Robots the troubled company for an undisclosed sum. According to Business Insider 33 million euros were transferred. The company plans to continue operations at Franka Emika with its approximately 100 employees. The company also intends to invest in the company's further growth in Bavaria. This includes expanding the product portfolio, strengthening global sales, and continuing R&D activities.
Zhaopeng Chen, CEO and founder of Agile Robots, says:
"The merger of Agile Robots and Franka Emika sends a strong signal for Germany as a center of robotics and AI. With this acquisition, an industrial solution has been found that offers us a unique opportunity to create a Bavarian technology company with a truly global perspective. We look forward to shaping the future of Industry 5.0 together with the Franka Emika employees."
Rory Sexton, VP Operations at Agile Robots, adds:
"With this merger, we are accelerating the implementation of our international growth strategy. The combination of high AI and software expertise with leading robot technology strengthens our innovative strength and our ability to bring needs-based, market-ready products to market. This is good for the location, for the employees, and for the customers of both companies."
Problems with the patents
The acquisition is also accompanied by a problem that could prove to be annoying for Agile Robots. Handelsblatt As reported, Franka Emika sold the rights to approximately 700 patents a few weeks before filing for insolvency. Although the insolvency administrator is working on reversing the sale, and shareholders have also obtained preliminary injunctions against the purchase agreement, it is not yet known whether these steps were successful.
At the same time, Agile Robots' connections to China are being discussed. Foxconn Industrial Internet, based in Shenzhen, China, is one of the startup's investors. Together with the Japanese Softbank and the founders, the OEM holds a majority stake in the company. Other investors include Linear Ventures and Hillhouse Capital, two other Chinese investors. Five of Agile Robotics' seven supervisory board members are entrepreneurs and investment managers from Shanghai and Beijing, according to the report. Business InsiderThe paper also reports on a letter from Munich-based entrepreneur brothers Christoph and Martin Schoeller to the Federal Ministry of Economics, in which they warn against a sale to Agile Robots because the company is "controlled by companies and institutions based in China." The two were also interested in acquiring Franka Emika.
