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The Key Takeaways
- Walmart and Symbotic have announced new partnerships that are expected to expand the relationship between them.
- Symbotic will buy Walmart's Advanced Systems and Robotics business for $200 million.
- Walmart is also paying $520,000,000 to develop a new automated system that could be used in hundreds of stores.
Shares of Symbotic, a robotics company (SYM), rose by about 20% in the morning of Thursday following an announcement that Walmart (WMT) would expand its partnership. Walmart will fund new automation projects and Symbotic will buy Walmart’s robotics unit.
Symbotic is acquiring Walmart's Advanced Systems and Robotics business for $200 million along with up to $350 million in potential future payments. Walmart also agreed to pay Symbotic up to $520m over the life of its new robotics development 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,” Rick Cohen, CEO of Symbotic 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 stock was down approximately 1% during Thursday’s morning trading.
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