On June 30, 2016, the SoftBank Group Corporation logo appeared at the company's headquarters in Tokyo. REUTERS/Toru Hanai
Reuters, December 13-Walmart (WMT.N)-backed Symbotic said on Monday that it will go public through a merger with SoftBank Group (9984.T)'s blank check company to provide the robotics and automation startup with a pro forma equity value of 5.5 billion Dollar.
The transaction with SVF Investment Corp 3 (SVFC.O) was backed by a group of investors including Wal-Mart’s $205 million private investment in public equity.
The total revenue of this transaction is estimated to be approximately 725 million U.S. dollars, and the estimated enterprise value of Symbotic is 4.8 billion U.S. dollars.
This Wilmington, Massachusetts company was founded in 2007. Its artificial intelligence software uses hundreds of mobile robots to increase speed and reduce damage to the distribution center.
Supply chain-centric Symbotic provides services in more than 1,400 stores in 16 states and 8 provinces in Canada, and provides services to retailers, grocers and wholesalers, including Walmart, Albertson (ACI.N) and C&S Wholesale Grocers.
The transaction was carried out in the context of labor shortages, port congestion, freight costs and chip shortages leading to failures in the global supply chain.
According to reports, SVF 3 raised $320 million in its March IPO, and it is looking for a new merger partner after negotiations with location data service provider Mapbox broke down.
SPAC, or special purpose acquisition company, is a publicly listed investment vehicle, has no business, and aims to merge with a private company.
For companies that wish to issue shares by avoiding traditional initial public offerings, they are an alternative way to enter the public market.
Several software and technology companies have applied to go public through a traditional IPO or SPAC in 2021, making it a record year for transactions in the industry.
The merged entity will operate under the name of Symbolic Inc. After the merger, it will be traded on the Nasdaq under the symbol "SYM" and is expected to be closed in the first half of next year.
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