Symbotic To Buy Walmart Advanced Systems And Robotics Unit, Signs Development Program; Stock Climbs

(RTTNews) - Shares of Symbotic Inc. (SYM) were gaining around 16 percent in the pre-market activity on the Nasdaq after the A.I.-enabled robotics technology company for the supply chain announced Thursday its agreement to acquire the Advanced Systems and Robotics business from Retail giant Walmart Inc. (WMT). Total consideration for the acquisition is $200 million in cash at close, subject to customary adjustments.

The acquisition is anticipated to close in Symbotic's fiscal second quarter of 2025.

In addition, Walmart has selected Symbotic to develop, build and deploy an advanced solution that automates its Accelerated Pickup and Delivery centers or APDs. The company would purchase and deploy systems for 400 APDs at stores over a multi-year period, with Walmarts option to add additional APDs in the coming years.

The deal also includes up to $350 million in additional contingent consideration in future periods dependent upon the quantity of APD systems ordered.

Under the deal, Symbotic will engage in the 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.

Associated with the development program, Walmart will pay Symbotic a total of $520 million, including $230 million at closing.

Symbotic noted that the acquisition and new agreements could increase its 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.

Rick Cohen, Chairman and Chief Executive Officer of Symbotic, said, "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."

In pre-market activity on the Nasdaq, Symbotic shares were trading at $30.99, up 15.76 percent.