Symbotic set to take over Walmart’s robotics business

Walmart and Symbiotic announced a deal Tuesday that the Massachusetts robotics firm will take control of the mega-retailer’s automation business. Symbotic is paying $200 million in cash and up to $350 million in “additional contingent consideration” for the program, depending on how the deal shakes out.

The relationship is more of a partnership than an outright acquisition, however, greatly strengthening Symbotic’s long-standing position as a key Walmart technology supplier. As part of the deal, Walmart is paying Symbotic a total of $520 million — including $230 million if it closes.

Symbotic provides backend hardware and software systems for warehousing and distribution. The deal will essentially find the company in automated control of Walmart’s pickup and delivery centers.

Walmart is considered Symbotic’s “anchor” partner, with deals dating back to 2017, when the retailer began introducing automated systems to its US 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 spawned the Amazon Robotics division.

The day of the contract is announced Leading to a second Trump administrationWhich is expected to get a much lighter touch on corporate M&A. Amazon’s recent attempt to buy Massachusetts-based iRobot ultimately died on the vine due to international regulation, leaving the Roomba-maker in a financial hole.

Meanwhile, the Symbotic deal is expected to close in Q2 2025.