Symbotic to take over Walmart’s robot business

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

The relationship is more of a partnership than a straight acquisition, but massively strengthens Symbotic’s long-term position as a key Walmart technology supplier. As part of the deal, Walmart is paying Symbotic a total of $520 million — an amount that includes $230 million if it closes.

Symbotic provides back-end hardware and software systems for warehouses and distribution. The deal would essentially see the company take control of Walmart’s automation of pickup and delivery centers.

Walmart is considered Symbotic’s “anchor” partner, and the deals date back to 2017, when the retailer began rolling out its automated systems in distribution centers across the US. It’s not entirely clear what the deal will mean for future contracts with non-Walmart customers, though in some ways it mirrors Amazon’s 2012 purchase of Kiva Systems, which spawned its Amazon Robotics division.

The deal was announced in days leading to a second Trump administrationexpected to have a lighter touch on corporate M&A. Amazon’s 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.