Walmart will sell its Advanced Systems and Robotics business to Symbotic for $200 million. As part of the deal, the robotics solution provider will engage in a Walmart-funded development program to enhance the retailer’s current online pickup and delivery fulfillment systems.
Walmart has committed to purchasing and deploying systems from Symbotic for 400 Accelerated Pickup and Delivery centers (APDs) over a multi-year period, with an option to purchase additional ADPs in coming years. Associated with the development program, Walmart will pay Symbotic a total of $520 million, including $230 million at closing.
Symbotic has been helping Walmart automate its supply chain since 2017, and is currently deploying its software and robotics platform across all 42 of Walmart’s U.S. regional distribution centers (DCs). Walmart believes bringing Symbotic’s expertise and tech platform to the APD represents a natural extension of this work and that it will allow the retailer to use its stores to fulfill pickup and delivery of orders more efficiently, economically and accurately.
“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,” said Rick Cohen, Chairman and CEO of Symbotic in a statement.
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“We’re excited about what this means for our customers,” said Greg Cathey, SVP of Transformation and Innovation at Walmart in a statement. “We anticipate the synergy between Symbotic’s expertise and our nearly decade-long relationship in innovating supply chain technologies to elevate customer service and rapidly advance our in-store Accelerated Pickup and Delivery capabilities.”