Amazon has bought the warehouse-robotics company Kiva for $775m in cash. The deal is expected to be completed in the second quarter of 2012, with Kiva continuing to run operations from their headquarters in North Reading, Massachusetts.

Dave Clark, the global customer fulfillment vice president of Amazon.com said "Kiva shares our passion for invention, and we look forward to supporting their continued growth". Amazon has used automation as a method of increasing productivity by bringing the products directly to employees to pick, pack and stow.

Quidsi and Zappos the online retailers that have been acquired by Amazon are also reported to be using Kiva’s robotic services.

The move comes as Amazon reports recent high costs of fulfilment services, and the online retailer hopes to reduce its operational costs.