Symbotic completes purchase of Walmart’s Advanced Systems and Robotics business

Symbotic (SYM) announced it has both completed the acquisition of the Advanced Systems and Robotics business from Walmart (WMT) and signed the related commercial agreement with Walmart covering the development and deployment of automation systems for Accelerated Pickup and Delivery centers at Walmart stores. 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. Under the terms of the Commercial Agreement, 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 $520M, including $230M that was paid at the closing of the acquisition of the Advanced Systems and Robotics business from Walmart. The transaction and new agreement could increase Symbotic’s future backlog by more than $5B and adds a micro-fulfillment solution that expands its addressable market by more than $300B in the United States alone.