Symbotic Acquires Walmart Robotics Business

By Tamara Parker • Thursday, January 16 15:23 • Permanent Link

Symbotic Inc. (NASDAQ: SYM) has announced its acquisition of Walmart's (NYSE: WMT) advanced systems and robotics business. The transaction includes an initial order covering hundreds of stores and a development program funded by Walmart to enhance online pickup and delivery fulfillment systems. As part of the deal, Walmart will pay Symbotic a total of $520 million, including $230 million at closing, with the potential to add more than $5 billion to Symbotic's future backlog.

The acquisition is expected to expand Symbotic's addressable market by over $300 billion in the United States alone. The total consideration for the acquisition is $200 million in cash at close, subject to customary adjustments, and up to $350 million in additional contingent consideration in future periods depending on the quantity of accelerated pickup and delivery (APD) systems ordered.

Symbotic's Chairman and CEO, Rick Cohen, highlighted the strategic significance of the transaction, emphasizing the expansion of the company's product offering beyond traditional warehousing to e-commerce settings for last-mile delivery. Symbotic has been instrumental in automating Walmart's supply chain since 2017 and is currently deploying its software and robotics platform across all 42 of Walmart's regional distribution centers in the U.S.

The acquisition is anticipated to close in Symbotic's fiscal second quarter of 2025. Walmart's Senior Vice President of Transformation and Innovation, Greg Cathey, expressed excitement about the synergies between Symbotic's expertise and their long-standing relationship, anticipating an elevation of customer service and rapid advancement of in-store accelerated pickup and delivery capabilities.

Symbotic's webcast to discuss the acquisition of Walmart's advanced systems and robotics business will be held today at 8 a.m. ET. Symbotic is a leader in automation technology, reimagining the supply chain with its end-to-end, AI-powered robotic and software platform, catering to the world's largest retail, wholesale, and food & beverage companies. Following these announcements, the company's shares moved 18.8%, and are now trading at a price of $31.81. For the full picture, make sure to review Symbotic's 8-K report.

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