(Reuters) - Symbotic ( SYM ) said on Thursday it would buy Walmart's ( WMT ) robotics business for $200 million in cash to help expand the retailer's automated supply chain, sending shares of the warehouse robotics firm up 20% in premarket trading.

The automation firm reached another agreement with Walmart ( WMT ) to develop the retail giant's pickup and delivery centers using its artificial intelligence-enabled robotics platform.

As a result, Walmart ( WMT ) would fund the development program and pay Symbotic ( SYM ) $520 million, including $230 million at closing, for the new agreement that includes an initial order to cover hundreds of stores.

The robotics vendor, which has been helping Walmart ( WMT ) automate its supply chain since 2017, said the acquisition was expected to close in the second quarter of fiscal 2025.

Retailers have been including AI-powered chatbots into their customer services, along with targeted promotions and loyalty programs, to entice shoppers who have increasingly turned to AI for better product recommendations.