Softbank Group has agreed with US-based supply-chain technology supplier Symbiotic to create a new joint-venture company, GreenBox Systems, to sell the latter’s AI-geared warehouse automation systems. As part of the deal, the new business has been appointed as the exclusive supplier of Symbotic’s warehouse analytics software; the pair said the distribution contract is worth about $7.5 billion in sales revenue over a six-year term, starting from 202.
Softbank and Symbotic own 65 percent and 35 percent, respectively, of the new joint-venture company; it has been funded initially with $100 million of capital, split 65/35 accordingly. A statement said: “After Symbotic’s initial $35 million contribution, the contract is expected to be accretive to Symbotic’s annual free cash flow.” GreenBox will sell the Symbotic systems in larger-scale deployments than Symbotic has so far managed by itself, it said.
Its pick-and-pack warehouse automation system is geared to orchestrate fleets of robots and enhance warehouse density and capacity, improve inventory management, and reduce errors and waste. It comprises autonomous robots, IoT sensors, and AI software. Symbotic claims to have sold the system into more than 2,600 stores, including to Walmart, Albertsons and C&S Wholesale Grocers. GreenBox will sellit as-a-service in international markets.
A statement said: “Symbotic expects in excess of $500 million in annual recurring [revenue from] software, parts and services… from GreenBox once all systems are operational.” It said the total addressable market for warehouse robot systems is worth $500 billion. The Symbiotic system enables robots to “store, retrieve, and palletize” products in native packaging at “industry-leading throughput rates and with 99.9999 percent accuracy,” it said GreenBox will deploy the system in single and multi-tenant facilities.
Rick Cohen, chairman and chief executive at Symbotic, said: “GreenBox enables Symbotic to bring the benefits of our technology to a broader customer universe, expanding our market opportunity.”
Vikas Parekh at SoftBank Investment Advisers, said: “GreenBox taps into the powerful potential of AI and other enabling technologies in supply chains, while also making the benefits of automation accessible to more businesses through an ‘as-a-service’ offering. In partnership with Symbotic, GreenBox will equip customers with more intelligent, streamlined, and scalable warehousing solutions while eliminating the burden of major capital expenditures.”
Presumably, but not made clear in the press statement, the system might also seek to leverage other Softbank-backed assets, including possibly the global IoT connectivity offered via Germany-based MVNO 1NCE, which is pitching for inter-warehouse supply-chain tracking deals. Meanwhile, Softbank has issued an announcement that 1NCE will supply global cellular IoT connectivity to Japan-based Pocketalk, a provider of translation solutions.
Softbank has a new deal with Pocketalk to sell the latter’s translation solutions to enterprise customers in Japan primarily, but also in global markets. The pair said they have resolved to sell one million Pocketalk series units in three years. Softbank will put 3,300 enterprise sales staff on the task, it said, to sell Pocketalk’s business interpretation software in combination with Zoom to its existing corporate customers.
Pocketalk will use 1NCE, as part of the deal. SoftBank has a stake in 1NCE, affording it exclusive distribution rights in 19 countries. A statement said: “1NCE-based IoT connections will provide a comfortable communication environment and support smooth communication in various business situations that require multilingual support.” Softbank explained the deal in terms of its ‘beyond carrier’ strategy to also embrace AI and IoT.
