Walmart and Symbotic announced a deal Tuesday that would find the Massachusetts robotics firm taking control of the mega-retailer’s automation business. Symbotic is paying $200 million in cash for the program, plus up to $350 million in “additional contingent consideration,” depending on how the deal shakes out.
The relationship is more partnership than straight acquisition, however, massively bolstering Symbotic’s longtime position as a key Walmart technology supplier. As part of the deal, Walmart is paying Symbotic a total of $520 million — a sum that includes $230 million if it closes.
Walmart is regarded as Symbotic’s “anchor” partner, with deals dating back to 2017, when the retailer began introducing its automated systems into its U.S. distribution centers. It’s not entirely clear what the deal will mean for future contracts with non-Walmart customers, though in some ways it echoes Amazon’s 2012 purchase of Kiva Systems, which gave rise to the Amazon Robotics division.
The deal was announced in the days leading up to a second Trump administration, which is expected to have a much lighter touch with regard to corporate M&As. Amazon’s recent attempt to purchase Massachusetts-based iRobot ultimately died on the vine due to international regulation, leaving the Roomba-maker in a financial hole.
The Symbotic deal, meanwhile, is expected to close in Q2 2025.