Symbotic completes Walmart acquisition, aiming to enhance automation for online pickup and delivery at stores through a $520 million agreement.
Quiver AI Summary
Symbotic Inc. has announced the successful acquisition of Walmart's Advanced Systems and Robotics business and the signing of a commercial agreement to enhance the automation systems for Walmart's Accelerated Pickup and Delivery centers. This partnership will utilize Symbotic’s AI-driven robotics technology to improve online shopping convenience for Walmart customers. Under the agreement, Walmart will invest $520 million in Symbotic, including $230 million at the acquisition’s closing, to develop and implement new fulfillment systems. If performance targets are met, Walmart plans to deploy systems to 400 APDs over several years, potentially increasing Symbotic’s backlog by over $5 billion and expanding its market by over $300 billion in the U.S. Symbotic's CEO expressed excitement about strengthening their collaboration with Walmart to support eCommerce growth.
Potential Positives
- Symbotic completed the acquisition of Advanced Systems and Robotics from Walmart, enhancing its technology portfolio.
- The new Commercial Agreement with Walmart includes a $520 million development program, providing significant financial backing.
- The potential to increase Symbotic's future backlog by over $5 billion represents a substantial growth opportunity.
- The partnership with Walmart broadens Symbotic's addressable market by more than $300 billion in the U.S. alone.
Potential Negatives
- Over-reliance on Walmart for future growth, with the majority of the financial backing (totaling $520 million) coming from this single partnership, increasing vulnerability to changes in Walmart's business strategy.
- Significant risk associated with forward-looking statements, as the company disclaimed any obligation to update or revise these projections, which may lead to investor skepticism regarding long-term viability.
- The potential for business disruption following the acquisition and agreement with Walmart could negatively impact Symbotic's operational performance and market perception.
FAQ
What acquisition did Symbotic complete with Walmart?
Symbotic completed the acquisition of Walmart's Advanced Systems and Robotics business to enhance supply chain automation.
What is the purpose of the new commercial agreement?
The agreement aims to develop and deploy automation systems for Walmart's Accelerated Pickup and Delivery centers.
How much is Walmart investing in the development program?
Walmart will invest a total of $520 million in the development program, including $230 million for the acquisition.
What potential growth does this agreement provide for Symbotic?
The agreement could increase Symbotic's future backlog by over $5 billion and expand its market addressable by $300 billion.
What is Symbotic's core technology focus?
Symbotic focuses on A.I.-enabled robotics technology to improve efficiency in the supply chain and warehouse operations.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$SYM Insider Trading Activity
$SYM insiders have traded $SYM stock on the open market 18 times in the past 6 months. Of those trades, 0 have been purchases and 18 have been sales.
Here’s a breakdown of recent trading of $SYM stock by insiders over the last 6 months:
- MICHAEL DAVID DUNN (See Remarks) has made 0 purchases and 7 sales selling 92,962 shares for an estimated $2,771,187.
- CAROL J. HIBBARD (Chief Financial Officer) has made 0 purchases and 2 sales selling 22,821 shares for an estimated $660,932.
- TODD KRASNOW has made 0 purchases and 6 sales selling 25,000 shares for an estimated $554,585.
- WILLIAM M III BOYD (Chief Strategy Officer) has made 0 purchases and 2 sales selling 8,826 shares for an estimated $250,025.
- MERLINE SAINTIL sold 5,250 shares for an estimated $150,691
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$SYM Hedge Fund Activity
We have seen 122 institutional investors add shares of $SYM stock to their portfolio, and 119 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- BAILLIE GIFFORD & CO added 3,410,050 shares (+32.0%) to their portfolio in Q3 2024, for an estimated $83,171,119
- CITADEL ADVISORS LLC removed 937,229 shares (-90.0%) from their portfolio in Q3 2024, for an estimated $22,859,015
- FRONTIER CAPITAL MANAGEMENT CO LLC added 731,076 shares (+160.1%) to their portfolio in Q3 2024, for an estimated $17,830,943
- CANADA PENSION PLAN INVESTMENT BOARD removed 695,100 shares (-89.6%) from their portfolio in Q3 2024, for an estimated $16,953,489
- GOLDMAN SACHS GROUP INC added 643,921 shares (+1590.2%) to their portfolio in Q3 2024, for an estimated $15,705,233
- BANK OF AMERICA CORP /DE/ added 511,250 shares (+2462.1%) to their portfolio in Q3 2024, for an estimated $12,469,387
- VOLORIDGE INVESTMENT MANAGEMENT, LLC added 510,581 shares (+1069.8%) to their portfolio in Q3 2024, for an estimated $12,453,070
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
WILMINGTON, Mass., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Symbotic Inc. (Nasdaq: SYM ), a leader in A.I.-enabled robotics technology for the supply chain, today announced it has both completed the acquisition of the Advanced Systems and Robotics business from Walmart (NYSE: WMT) and signed the related commercial agreement with Walmart covering the development and deployment of automation systems for Accelerated Pickup and Delivery centers (“APDs”) at Walmart stores (the “Commercial Agreement”).
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. Under the terms of the Commercial Agreement, Symbotic will engage in a 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. 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 $520 million, including $230 million that was paid at the closing of the acquisition of the Advanced Systems and Robotics business from Walmart.
The transaction and new agreement could increase Symbotic’s 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.
“We’re excited to expand upon our long-term relationship with Walmart while broadening our product offering to automation at the store to support the growth of eCommerce,” said Rick Cohen, Chairman and Chief Executive Officer of Symbotic.
ABOUT SYMBOTIC
Symbotic is an automation technology leader reimagining the supply chain with its end-to-end, A.I.-powered robotic and software platform. Symbotic reinvents the warehouse as a strategic asset for the world’s largest retail, wholesale, and food & beverage companies. Applying next-generation technology, high-density storage and machine learning to solve today's complex distribution challenges, Symbotic enables companies to move goods with unmatched speed, agility, accuracy and efficiency. As the backbone of commerce, Symbotic transforms the flow of goods and the economics of the supply chain for its customers. For more information, visit www.symbotic.com .
FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but are not limited to, our expectations or predictions of future financial or business performance or conditions. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events, backlog, or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” or “intends” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed in Symbotic’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith, and Symbotic believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Symbotic is not under any obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports, which Symbotic has filed or will file from time to time with the SEC.
In addition to factors previously disclosed in Symbotic’s filings with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: failure to realize the benefits expected from the transactions described herein (the “Transactions”); business disruption following the Transactions; the occurrence of any event, change or other circumstance that could give rise to the termination of the agreements entered into in connection with the Transactions, including the Commercial Agreement; the effect of the Transactions on Symbotic’s business relationships, performance, and business generally; the amount of the costs, fees, expenses and other charges related to the Transactions; and other consequences associated with joint ventures and legislative and regulatory actions and reforms.
Any financial projections in this communication are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Symbotic’s control. While all projections are necessarily speculative, Symbotic believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection extends from the date of preparation. The assumptions and estimates underlying the projected results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projections. The inclusion of projections in this communication should not be regarded as an indication that Symbotic or its representatives considered or consider the projections to be a reliable prediction of future events.
Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results.
This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Symbotic and is not intended to form the basis of an investment decision in Symbotic. All subsequent written and oral forward-looking statements concerning Symbotic, the Transactions or other matters and attributable to Symbotic or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.
INVESTOR RELATIONS CONTACT
Charlie Anderson
Vice President, Investor Relations & Corporate Development
[email protected]
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