Symbotic to buy Walmart's robotics business for $200m

(Sharecast News) - Symbotic surged on Thursday after saying it has agreed to buy Walmart's Advanced Systems and Robotics business for $200m. The US robotics warehouse automation company said the deal expands the long-standing relationship between Walmart and Symbotic, with the aim of developing an integrated automated supply chain.

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.

Symbotic said it will engage in a development program funded by Walmart to enhance current online pickup and delivery fulfilment systems as well as 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 $230 million at closing.

Rick Cohen, chairman and chief executive 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."

At 1555 GMT, Symbotic shares were up 16% at $31.13.