Walmart to Acquire Volt Systems, Boosting On-Demand Visibility for Suppliers

Trending News 🌥️

This acquisition will allow Walmart ($NYSE:WMT) to provide its suppliers with enhanced on-demand visibility into merchandising resources. The acquisition includes company, talent, technology, and customer agreements. This will help Walmart to better manage its inventory and improve the efficiency of its supply chain. In the long term, this should help to increase Walmart’s market share and earnings.

Market Reaction

The move comes as Walmart looks to further strengthen its position in the e-commerce space. Volt Systems provides a cloud-based software platform that helps suppliers manage inventory and track shipments. The acquisition is expected to help Walmart improve its supply chain management and provide a more seamless experience for customers. The terms of the deal were not disclosed.

VI Analysis

VI Star Chart shows that WALMART is classified as ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. Dividend paying companies are deemed less risky as they pursuit growth at a sustainable rate. WALMART has an intermediate health score of 6/10 with regard to its cashflows and debt, is likely to pay off debt and fund future operations. WALMART is strong in asset, dividend, profitability, and weak in growth. Company’s fundamentals reflect its long term potential, below analysis on WALMART are made simple by VI app.

Summary

This is the latest in a string of acquisitions by Walmart aimed at beefing up its e-commerce capabilities. The acquisition of Volt Systems is expected to close later this year.