Symbotic Inc. (NASDAQ: SYM) experienced a significant market boost this morning, with shares rising by 13.58% to $30.41 as of the latest check. The surge follows the company’s announcement of a strategic asset acquisition that marks a major step forward in its partnership with retail giant Walmart.
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Walmart Collaboration Expands
Symbotic revealed its agreement to acquire Walmart’s Advanced Systems and Robotics business. With an emphasis on building an automated and integrated supply chain, this acquisition strengthens the two businesses’ long-standing partnership. By utilizing SYM’s cutting-edge AI-enabled robotics platform, the partnership intends to transform Walmart’s online shopping experience by enhancing store pickup and delivery services.
Symbotic will also participate in a Walmart-funded development program to modernize current fulfillment systems and create new ones in response to changing customer needs.Walmart has committed to deploying systems for 400 Accelerated Pickup and Delivery (APD) units across its stores over several years, with the option to expand further.
Financial Highlights of the Deal
Under the agreement, Walmart will pay $520 million to Symbotic, including $230 million at the deal’s closing. The remaining amount is contingent upon achieving performance milestones. The acquisition itself involves $200 million in upfront cash payments and up to $350 million in potential future payments based on the volume of APD systems ordered.
Strategic Vision and Market Response
It is anticipated that the deal would greatly increase Symbotic’s market reach and strengthen its backlog by more than $5 billion. The company’s addressable market in the United States increases by over $300 billion with the inclusion of a micro-fulfillment service. The deal’s strategic aspect emphasizes SYM’s ability to improve last-mile deliveries and eCommerce capabilities.
Since 2017, Symbotic has been instrumental in automating Walmart’s supply chain, deploying its robotics platform across all 42 regional distribution centers. This latest development represents a natural progression, enabling Walmart to optimize in-store order fulfillment.