Symbotic Stock Soars on Walmart Robotics Deal
Thursday, Jan 16, 2025 2:46 pm ET
4min read 
Symbotic Inc. (SYM) shares are surging today, up nearly 20% in early trading, following a major announcement that has investors buzzing. The automation technology company has agreed to acquire Walmart's (WMT) Advanced Systems and Robotics business for $200 million in cash, with the potential for an additional $350 million in performance-based bonuses. This strategic move is set to significantly enhance Symbotic's product offerings and market potential.
The acquisition is highly strategic for Symbotic, as it expands upon the company's long-term relationship with Walmart and broadens its product offering to eCommerce settings for last-mile delivery. In conjunction with the acquisition, Walmart plans to purchase systems for 400 Accelerated Pickup and Delivery centers (APDs) over a multi-year period. Walmart will pay Symbotic a total of $520 million, including $230 million at closing. This deal is expected to add more than $5 billion to Symbotic's future backlog and expand its addressable market by more than $300 billion in the U.S.
Rick Cohen, Chairman and CEO of Symbotic, expressed that the transaction is highly strategic, stating, "This is a massive step forward for us—scaling beyond warehouse automation into eCommerce fulfillment." Greg Cathey, Senior Vice President of Transformation and Innovation at Walmart, noted the excitement surrounding the deal, highlighting the potential to elevate customer service and rapidly advance Walmart's in-store Accelerated Pickup and Delivery capabilities.
Investors have clearly resonated with the news, as reflected in the sharp rise in Symbotic's stock price. The deal puts Symbotic at the heart of Walmart's next-gen supply chain, rolling out AI-powered automation across 400 fulfillment centers. If the tech hits its targets, Walmart will go all-in, integrating Symbotic's system into its rapidly evolving logistics network. This acquisition cements Symbotic's role as Walmart's go-to automation partner, with the deal set to close in Q2 2025.
In conclusion, Symbotic's stock is skyrocketing today on the back of a strategic acquisition that expands the company's product offerings and market potential. The deal with Walmart is expected to add billions to Symbotic's future backlog and significantly expand its addressable market. With investor confidence boosted, Symbotic is well-positioned to capitalize on the growing demand for automation and robotics in the supply chain.
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