Automation firm Symbotic to buy Walmart’s robotics business for $200MAutomation firm Symbotic to buy Walmart’s robotics business for $200M

AI tech company Symbotic Inc. will acquire Walmart’s robotics business for $200 million, the automation firm announced Wednesday.

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The deal is part of an agreement to expand the retailer’s automated supply chain. Symbotic will work with Walmart to create an AI-enabled robotics platform that will result in accelerated online pickup and delivery options at its delivery centers. Walmart will fund that development program and pay Symbotic $520 million, including some $230 million at closing, for the agreement which includes an initial order affecting hundreds of stores.

It’s already begun

Walmart has already started the process of upgrading its regional distribution centers with high-tech automation systems installed within its Buckeye, Ariz., and Searcy, Ark., locations late last year. Once complete, the centers will be able to ship nearly double the number of cases compared to a traditional regional distribution center while evolving manual jobs into those that offer new skills in robotics and tech.

By the numbers