Symbotic Acquires Walmart's Robotics Unit in $200M Deal, Expanding AI-Driven Automation Partnership

Symbotic secures Walmart deal for AI-driven automation By Investing.com

WILMINGTON, Mass. - Symbotic Inc. (NASDAQ:SYM), a pioneer in artificial intelligence and robotics for supply chains, has solidified a deal with retail giant Walmart (NYSE:NYSE:WMT), a $733.77 billion market cap company and prominent player in Consumer Staples, to automate its Accelerated Pickup and Delivery centers (APDs). According to InvestingPro analysis, Walmart is currently trading above its Fair Value, reflecting strong investor confidence in its digital transformation initiatives. The contract, which aims to streamline Walmart's e-commerce fulfillment, could add over $5 billion to Symbotic's future backlog. Under the agreement, Symbotic will be responsible for developing and deploying advanced automation solutions at several Walmart stores, enhancing the retailer's online pickup and delivery services. Walmart has committed to implementing this technology in 400 of its APDs over the coming years, with an option to expand to more locations. The partnership is set to bolster Walmart's ability to meet the increasing demand for e-commerce, leveraging its vast network of over 4,600 stores, which are within 10 miles of 90% of the U.S. population. With annual revenue reaching $673.82 billion and a robust 71.35% stock return over the past year, Walmart's digital transformation strategy appears to be paying off. This proximity has already contributed to a nearly 50% year-over-year growth in store-fulfilled deliveries, with Walmart reporting a monthly run rate surpassing $2.5 billion as of October 31, 2024. The transaction, expected to close in Symbotic's fiscal second quarter of 2025, includes a $200 million cash payment at closing, with up to $350 million in additional contingent consideration based on the number of APD systems ordered. Walmart will also fund a development program with an initial payment of $520 million, including $230 million at closing. Rick Cohen, Chairman and CEO of Symbotic, highlighted the strategic nature of the acquisition, emphasizing the expansion of their product offerings into e-commerce settings for last-mile delivery. Greg Cathey, Senior Vice President of Transformation and Innovation at Walmart, expressed enthusiasm for the enhanced customer service and accelerated pickup and delivery capabilities that the collaboration with Symbotic is anticipated to deliver. This development is a continuation of Symbotic and Walmart's relationship, which began in 2017 with the automation of Walmart's regional distribution centers across the U.S. The new initiative is set to expand Symbotic's market by more than $300 billion in the United States alone, marking a significant milestone in the company's growth. For detailed analysis of Walmart's financial health (rated GOOD by InvestingPro) and over 30 additional key metrics, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. The information for this article is based on a press release statement from Symbotic Inc. In other recent news, Walmart Inc. has been making strides with significant developments. The company reported a revenue of $674 billion in the last twelve months, marking a steady growth rate of 5.48%. Analyst Oliver Chen from TD Cowen highlighted Walmart's impressive performance and maintained a Buy rating for the company. Walmart's marketplace initiatives and Walmart+ offerings have been instrumental in attracting and retaining customers, contributing to the company's growth. Recently, Walmart GoLocal, the company's delivery service, partnered with IBM (NYSE:IBM) to improve last-mile delivery for retailers. This collaboration integrates Walmart GoLocal into IBM's Sterling Order Management system to streamline delivery processes. Furthermore, Walmart unveiled a refreshed brand identity, signaling a transformation into a digital-first, omnichannel retailer. In other developments, Piper Sandler upgraded Walmart's stock based on a positive sales outlook for 2025. The firm expects consumers to accelerate purchases of big-ticket household items due to anticipated price increases from tariffs. However, Walmart and its fintech partner, Branch Messenger Inc., face a lawsuit from the Consumer Financial Protection Bureau for allegedly opening costly bank accounts for delivery drivers without consent.

Symbotic Stock Pops on New Robotics Partnership With Walmart

Meanwhile, Walmart will pay $520 million to fund the development of a new automation system to potentially use in hundreds of its stores. Shares of robotics company Symbotic (SYM) jumped about 20% Thursday morning after the company announced an expanded partnership with Walmart (WMT) that includes Symbotic buying Walmart's robotics business, and Walmart funding development of new automation programs. Symbotic is acquiring Walmart's Advanced Systems and Robotics business for $200 million along with up to $350 million in potential future payments. In addition, Walmart will pay Symbotic $520 million over the course of the development of a new robotics platform. Symbotic will Develop 'Advanced' Robotics Platform The companies said Thursday that Symbotic will develop "an advanced solution leveraging Symbotic's A.I.-enabled robotics platform to offer Walmart customers greater shopping convenience through accelerated online pickup and delivery options at stores." Assuming the project hits certain "performance criteria," Walmart will buy Symbotic's system for 400 "accelerated pickup and delivery centers" over the next several 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 eCommerce settings for last mile delivery," Symbotic CEO Rick Cohen said. The companies have worked together to automate parts of Walmart's robotics projects and supply chain since 2017, and expect Symbotic's acquisition of Walmart's robotics business to close in the second quarter of this year. Walmart shares were down about 1% in Thursday morning trading.

Symbotic to Acquire Walmart's Advanced Systems and Robotics Business and Sign Related Commercial Agreement - Symbotic (NASDAQ:SYM), Walmart (NYSE:WMT)

Walmart has selected Symbotic to develop, build and deploy an advanced solution that automates its Accelerated Pickup and Delivery centers ("APDs"), with an initial order covering hundreds of stores.Acquisition adds new product category for Symbotic to address opportunity for automated fulfillment of customer orders at the local and store level, supporting the growth of eCommerce. Agreement could add more than $5 billion to Symbotic's future backlog. WILMINGTON, Mass., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Symbotic Inc. SYM, a leader in A.I.-enabled robotics technology for the supply chain, today announced it has agreed to acquire the Advanced Systems and Robotics business from Walmart WMT. This transaction expands the long-standing relationship between Walmart and Symbotic with the aim of developing an integrated automated supply chain. Walmart has chosen Symbotic to develop, build and deploy an advanced solution leveraging Symbotic's A.I.-enabled robotics platform to offer Walmart customers greater shopping convenience through accelerated online pickup and delivery options at stores. Symbotic will engage in a development program funded by Walmart to enhance current online pickup and delivery fulfillment systems as well as to design new systems to meet the needs of current and future customers. If performance criteria are achieved, Walmart is committed to purchasing and deploying systems for 400 APDs at stores over a multi-year period, with Walmart's option to add additional APDs in the coming years. Associated with the development program, Walmart will pay Symbotic a total of $520 million, including $230 million at closing. The transaction and new agreements could increase Symbotic's future backlog by more than $5 billion and adds a micro-fulfillment solution that expands its addressable market by more than $300 billion in the United States alone. 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 dependent upon the quantity of APD systems ordered. "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, Chairman and Chief Executive Officer of Symbotic. Symbotic has played a critical role in enabling Walmart to automate its vast 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. Bringing Symbotic's expertise and technology platform to the APD is a natural extension of this work and allows Walmart to utilize its stores to fulfill eCommerce orders through pickup and delivery more efficiently, economically, and accurately. Approximately 90% of the U.S. population lives within 10 miles of Walmart's more than 4,600 stores. Walmart's store-fulfilled deliveries grew nearly 50% year-over-year, surpassing a $2.5 billion monthly run rate, during its quarter ended October 31, 2024. "We're excited about what this means for our customers. 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," said Greg Cathey, Senior Vice President of Transformation and Innovation at Walmart. The acquisition is anticipated to close in Symbotic's fiscal second quarter of 2025. Citi served as financial advisor to Symbotic. WEBCAST INFORMATION Symbotic will host a webcast today at 8 a.m. ET to discuss the acquisition of Walmart's Advanced Systems and Robotics business. The webcast link is: https://edge.media-server.com/mmc/p/rjiibzn9. ABOUT SYMBOTIC Symbotic is an automation technology leader reimagining the supply chain with its end-to-end, A.I.-powered robotic and software platform. Symbotic reinvents the warehouse as a strategic asset for the world's largest retail, wholesale, and food & beverage companies. Applying next-generation technology, high-density storage and machine learning to solve today's complex distribution challenges, Symbotic enables companies to move goods with unmatched speed, agility, accuracy and efficiency. As the backbone of commerce, Symbotic transforms the flow of goods and the economics of the supply chain for its customers. For more information, visit www.symbotic.com. FORWARD-LOOKING STATEMENTS This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but are not limited to, our expectations or predictions of future financial or business performance or conditions. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events, backlog, or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," or "intends" or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed in Symbotic's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith, and Symbotic believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Symbotic is not under any obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports, which Symbotic has filed or will file from time to time with the SEC. In addition to factors previously disclosed in Symbotic's filings with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: failure to realize the benefits expected from the transactions described herein (the "Transactions"); business disruption following the Transactions; the occurrence of any event, change or other circumstance that could give rise to the termination of the agreements entered into in connection with the Transactions; the effect of the announcement of the Transactions on Symbotic's business relationships, performance, and business generally; the amount of the costs, fees, expenses and other charges related to the Transactions; and other consequences associated with joint ventures and legislative and regulatory actions and reforms. Any financial projections in this communication are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Symbotic's control. While all projections are necessarily speculative, Symbotic believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection extends from the date of preparation. The assumptions and estimates underlying the projected results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projections. The inclusion of projections in this communication should not be regarded as an indication that Symbotic or its representatives considered or consider the projections to be a reliable prediction of future events. Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results. This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Symbotic and is not intended to form the basis of an investment decision in Symbotic. All subsequent written and oral forward-looking statements concerning Symbotic, the proposed Transactions or other matters and attributable to Symbotic or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. INVESTOR RELATIONS CONTACT Charlie Anderson Vice President, Investor Relations & Corporate Development ir@symbotic.com MEDIA INQUIRIES mediainquiry@symbotic.com SYMSymbotic Inc$27.201.61%WatchlistOverviewWMTWalmart Inc$91.490.16%Market News and Data brought to you by Benzinga APIs

Automation firm Symbotic signs $200 million deal to buy Walmart's robotics unit

(Reuters) - Symbotic said on Thursday it would buy Walmart's robotics business for $200 million in cash to help expand the retailer's automated supply chain, sending shares of the warehouse robotics firm up 20% in premarket trading. The automation firm reached another agreement with Walmart to develop the retail giant's pickup and delivery centers using its artificial intelligence-enabled robotics platform. As a result, Walmart would fund the development program and pay Symbotic $520 million, including $230 million at closing, for the new agreement that includes an initial order to cover hundreds of stores. The robotics vendor, which has been helping Walmart automate its supply chain since 2017, said the acquisition was expected to close in the second quarter of fiscal 2025. Retailers have been including AI-powered chatbots into their customer services, along with targeted promotions and loyalty programs, to entice shoppers who have increasingly turned to AI for better product recommendations. (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shilpi Majumdar)