Symbotic Inc., a leader in automation and artificial intelligence-enabled robotics, announced a significant deal to acquire Walmart's Advanced Systems and Robotics business for $200 million. The agreement, which includes potential contingent payments of up to $350 million based on performance, represents a major step in the companies' ongoing collaboration to revolutionize retail supply chain automation.
The deal also includes Walmart funding a $520 million development program with Symbotic to enhance its Accelerated Pickup and Delivery (APD) systems. Of this amount, $230 million will be paid at closing, and Symbotic expects the acquisition to finalize in the second quarter of its fiscal 2025.
"This is a highly strategic transaction for Symbotic as we expand upon our long-term relationship with Walmart and broaden our product offering beyond the traditional warehouse to eCommerce settings for last-mile delivery," said Rick Cohen, Symbotic's Chairman and Chief Executive Officer.
The partnership, which began in 2017, aims to optimize Walmart's supply chain capabilities using Symbotic's robotics and AI platforms. The agreement provides for the development and deployment of advanced systems across hundreds of Walmart's APD centers, with initial orders covering 400 locations and options to expand further.
Greg Cathey, Walmart's Senior Vice President of Transformation and Innovation, noted, "We anticipate the synergy between Symbotic's expertise and our nearly decade-long relationship in innovating supply chain technologies to elevate customer service and rapidly advance our in-store Accelerated Pickup and Delivery capabilities."
Symbotic's robotics solutions have become an integral part of Walmart's supply chain strategy, with systems designed to streamline operations and improve efficiency. The newly acquired robotics business will play a pivotal role in developing micro-fulfillment centers, positioning Walmart to meet growing consumer demand for fast and reliable order fulfillment.
The transaction has the potential to significantly impact Symbotic's backlog, which could increase by more than $5 billion. It also expands the company's addressable market in the U.S. by over $300 billion, highlighting the broader opportunities in automation and AI-driven supply chain solutions.
Symbotic's shares surged approximately 14% following the announcement, reflecting investor confidence in the deal's potential to transform the company's market position. The firm reported $730 million in cash and equivalents at the end of the fourth quarter, underscoring its financial strength to support the transaction and subsequent growth initiatives.
