Symbotic provides robots and dense storage for warehouse operators and major retailers. Source: Symbotic
Symbotic Inc. today announced that it will acquire Walmart Inc.’s Advanced Systems and Robotics business. The supply chain robotics company said the transaction expands its relationship with Walmart with the goal of “developing an integrated supply chain.”
Along with the development program, Walmart plans to pay Symbotic a total of $520 million, including $230 million at closing. 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, depending on the number of Accelerated Pickup and Delivery (APD) systems ordered.
Symbotic noted that the transaction and new agreements could increase its backlog by more than $5 billion. The program will result in a system for micro-fulfillment that expands the company’s addressable market by more than $300 billion in the U.S. alone, it said.
“We’re excited about what this means for our customers,” stated Greg Cathey, senior vice president of transformation and innovation at Walmart. “We anticipate the synergy between Symbotic’s expertise and our nearly decade-long relationship in innovating the supply chain technologies to elevate customer service and rapidly advance our in-store Accelerated Pickup and Delivery capabilities.”
Symbotic to develop new fulfillment systems
Walmart has chosen Symbotic to develop, build, and deploy systems to offer Walmart customers greater shopping convenience through accelerated online pickup and delivery options at its stores. With Walmart’s funding, Symbotic will develop technologies to enhance current fulfillment systems and design new ones to meet customer needs.
If performance criteria are achieved, Walmart will purchase and deploy systems for 400 APDs at stores over a multi-year period. The Bentonville, Ark.-based company has an option to add more APDs in the coming years.
“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 e-commerce settings for last-mile delivery,” said Rick Cohen, chairman and CEO of Symbotic.
Walmart has also worked with automation providers including Bossa Nova, GreyOrange, Fox Robotics, Gatik, and Swisslog. In 2022, the company bought Alert Innovation.
Walmart has partnered with Symbotic, among other automation providers, since 2017. Source: Business Wire
Walmart continues robotics relationship
About 90% of the U.S. population lives within 10 miles of Walmart’s more than 4,600 stores. The retailer said its store-fulfilled deliveries grew nearly 50% year over year, surpassing a $2.5 billion monthly run rate, during the quarter ended Oct. 31, 2024.
Founded in 2007, Symbotic has developed robots, software, and artificial intelligence serving retail, wholesale, and food and beverage companies. The Wilmington, Mass.-based company said it applies high-density storage and machine learning to complex distribution challenges.
In October, Symbotic agreed to implement its warehouse automation at two sites of Walmart’s Mexican affiliate. The company is a 2024 RBR50 Robotics Innovation Award honoree for its logistics robots.
Symbotic acquired Veo Robotics in August and OhmniLabs in December. Last week, it named robotics veteran James Kuffner as chief technology officer.
Symbotic has helped Walmart automate its supply chain since 2017 and is currently deploying its platform across all 42 of Walmart’s regional distribution centers in the U.S. It said that applying its expertise to the APD is a “natural extension” of its collaboration and will help Walmart stores fulfill e-commerce orders more efficiently, economically, and accurately.
Walmart and Symbotic said they expect the acquisition to close in Symbotic’s second fiscal quarter of 2025. Citi served as a financial advisor to Symbotic.
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