Symbotic’s shares jumped about 14% on Thursday after the automation firm said it would buy Walmart’s robotics business for $200 million as part of an agreement to expand the retailer’s automated supply chain.
The company said it would use its artificial intelligence-enabled robotics platform to improve operations at Walmart’s pickup and delivery centers.
Walmart will fund the development program and pay Symbotic $520 million, including $230 million at closing, for the new agreement that includes an initial order to cover hundreds of stores.
Symbotic, which has been helping Walmart automate its supply chain since 2017, said the acquisition was expected to close in the second quarter of fiscal 2025.
Some retailers have already been using chatbots, along with targeted promotions and loyalty programs to entice shoppers who have increasingly turned to AI for product recommendations.
Source: Reuters.com