Symbotic to take over Walmart’s robotics business

Walmart and Symbiotic announced an agreement Tuesday you’ll find the Massachusetts robotics firm taking control of the mega-retailer’s automation business. Symbotic paid $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 collaborative than outright acquisition, however, massively strengthening Symbotic’s longtime position as a key Walmart technology provider. As part of the deal, Walmart is paying Symbotic a total of $520 million — a sum that includes $230 million at closing.

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

Walmart is considered Symbotic’s “still” partner, with deals dating back to 2017, when the retailer began introducing its automated systems to its distribution centers in the United States. 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 division Amazon Robotics.

The deal was announced within days leading to a second Trump administrationwhich is expected to have a much lighter touch in terms of corporate M&A. Amazon’s recent attempt to acquire 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.