Core Viewpoint - Symbotic Inc. has agreed to acquire Walmart's Advanced Systems and Robotics business, enhancing their long-term partnership and aiming to develop an integrated automated supply chain [1][4]. Group 1: Acquisition Details - The total consideration for the acquisition is $200 million in cash at closing, with up to $350 million in additional contingent consideration based on future orders of Automated Pickup and Delivery (APD) systems [3]. - Walmart will pay Symbotic a total of $520 million for a development program to enhance online pickup and delivery systems, including $230 million at closing [2][3]. Group 2: Market Impact - The transaction could increase Symbotic's future backlog by more than $5 billion and expand its addressable market by over $300 billion in the U.S. [3]. - Walmart's store-fulfilled deliveries grew nearly 50% year-over-year, surpassing a $2.5 billion monthly run rate during the quarter ended October 31, 2024 [5]. Group 3: Strategic Importance - This acquisition allows Symbotic to extend its product offerings beyond traditional warehouse settings to eCommerce, enhancing last-mile delivery capabilities [4][9]. - Symbotic has been instrumental in automating Walmart's supply chain since 2017, deploying its technology across all 42 of Walmart's regional distribution centers in the U.S. [5].
Symbotic to Acquire Walmart's Advanced Systems and Robotics Business and Sign Related Commercial Agreement