Symbotic Stock Pops on New Robotics Partnership With Walmart [Video]

Shares of robotics company Symbotic (SYM) jumped about 20% Thursday morning after the company announced an expanded partnership with Walmart (WMT) that includes Symbotic buying Walmart’s robotics business, and Walmart funding development of new automation programs.

Symbotic is acquiring Walmart’s Advanced Systems and Robotics business for $200 million along with up to $350 million in potential future payments. In addition, Walmart will pay Symbotic $520 million over the course of the development of a new robotics platform.

The companies said Thursday that Symbotic will develop “an advanced solution leveraging Symbotic’s A.I.-enabled robotics platform to offer Walmart customers greater shopping convenience through accelerated online pickup and delivery options at stores.”

Assuming the project hits certain “performance criteria,” Walmart will buy Symbotic’s system for 400 “accelerated pickup and delivery centers” over the next several years.

“This is a highly strategic transaction for Symbotic as we expand upon our long-term relationship with Walmart and broaden our product …