By Emily Dattilo
Shares of Symbotic were trading sharply higher after the artificial-intelligence-enabled robotics technology company said it was furthering its partnership with Walmart by acquiring the retailer's advance systems and robotics business.
Symbotic stock gained 20% in premarket trading. Walmart shares increased 0.2%.
"Walmart has selected Symbotic to develop, build and deploy an advanced solution that automates its Accelerated Pickup and Delivery centers ('APDs'), with an initial order covering hundreds of stores," Symbotic said in a press release.
"If performance criteria are achieved, Walmart is committed to purchasing and deploying systems for 400 APDs at stores over a multi-year period, with Walmart's option to add additional APDs in the coming years," the company added.
Walmart will pay Symbotic a total of $520 million under the development program.
The transaction -- which is expected to close in Symbotic's fiscal second quarter -- could increase its future backlog by more than $5 billion.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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(END) Dow Jones Newswires
January 16, 2025 09:03 ET (14:03 GMT)
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