Symbiotic to Go Public via SoftBank SPAC, Backed by Walmart

Walmart Deepens Robotics Investment with Symbotic

Walmart has experienced varying levels of success in its exploration of robotics, consistently seeking opportunities to enhance its competitive standing against Amazon's dominance in the online retail sector. A recent agreement finalized in July with Symbotic demonstrates the mega-retailer’s reinforced dedication to the automation company headquartered in Massachusetts.

This expanded partnership builds upon an initial pilot program launched in 2017. The aim is to integrate robotic systems into 25 of Walmart’s regional distribution centers.

Expanding Robotic Reach

The implementation process is projected to span “several years” and aligns with existing collaborations with Albertsons and C&S Wholesale Grocers. Symbotic reports that its current systems currently serve over 1,400 stores across 16 U.S. states and 8 Canadian provinces.

These figures likely reflect the locations directly influenced by the distribution centers utilizing Symbotic’s technology. The company’s autonomous robotic systems are designed to enhance, rather than replace, existing warehouse infrastructure.

Notably, Symbotic is also focusing on solutions to address current challenges within the global supply chain.

Symbotic to Become Publicly Traded

Today, Symbotic revealed its plans to enter the public market through a merger with SVF Investment Corp. 3, a special purpose acquisition company (SPAC) affiliated with SoftBank Investment Advisers.

This transaction establishes a pro forma equity value of approximately $5.5 billion for the company. It is also expected to generate gross proceeds exceeding $725 million, including a $200 million investment from SoftBank.

This development follows a particularly active year for SoftBank in terms of investments within the robotics industry.

Leadership Perspective

“Now is the time to take Symbotic to the next level,” stated Rick Cohen, CEO of Symbotic, in a press release. “SoftBank’s extensive experience in investing in cutting-edge artificial intelligence and robotics innovators, coupled with our partnership, will provide valuable insights, connections, and capital.

This collaboration will enable us to fully realize our potential. I am confident that Symbotic will become a significant and enduring force in modernizing the supply chain, benefiting all stakeholders.”

Walmart’s Stake

Assuming the deal concludes as anticipated in the first half of 2022, Walmart will hold a 9% ownership stake in the robotics and AI firm. While this differs from Amazon’s outright acquisitions, such as that of Kiva Systems – which now forms the basis of Amazon Robotics – it’s evident that Walmart views investment in robotic fulfillment centers as crucial for its future success.