AI tech company Symbotic has agreed to acquire Walmart’s Advanced Systems and Robotics division for $200m in cash.
Symbotic will construct and implement an advanced solution powered by its AI and robotics platform.
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This initiative is set to enhance the shopping experience for Walmart customers by expediting in-store online order pickups and augmenting delivery services.
Symbotic will spearhead a development programme financed by Walmart, which is designed to refine existing online order fulfilment systems and engineer novel solutions tailored to meet the evolving demands of current and prospective customers.
Should Symbotic meet established performance benchmarks, Walmart has pledged to invest in the deployment of systems for 400 automated pickup and delivery (APD) stations across its stores over an extended timeframe.
Walmart retains the option to scale up its APD network in the future.
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By GlobalDataIn conjunction with the development programme, Walmart will pay Symbotic $520m, including an upfront payment of $230m upon closing.
The acquisition and ensuing agreements potentially amplify Symbotic’s future backlog by more than $5bn.
The deal introduces a micro-fulfilment solution that broadens Symbotic’s reach by more than $300bn within the US market alone.
Symbotic chairman and CEO Rick Cohen stated: “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.”
Since 2017, Symbotic has been instrumental in propelling Walmart’s supply chain automation forward and is presently integrating its proprietary software and robotics platform across all 42 of Walmart’s regional distribution centres within the US.
With 90% of the US populace living within ten miles of one of Walmart’s 4,600 stores, the potential impact on customer service is significant.
During the quarter ended 31 October 2024, Walmart reported a 50% year-on-year surge in store-fulfilled deliveries, achieving a monthly run rate surpassing $2.5bn.
Walmart transformation and innovation senior vice-president Greg Cathey stated: “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.”
The transaction is expected to be finalised during Symbotic’s fiscal second quarter of 2025.
In December 2024, retail digitalisation solutions provider VusionGroup secured a contract expansion with Walmart to expedite the introduction of its advanced technologies across the US.
