Ocado Group PLC on Wednesday said it has signed a deal for Ocado Intelligent Automation with McKesson Canada.

The Hertfordshire-based online grocer and warehouse technology firm said the deal is to provide automated fulfilment technology at a McKesson distribution site.

It said the deal will see its technology sold outside of the grocery retail sector, with McKesson Canada being a Canadian healthcare provider and largest pharmaceutical distributor in the country.

The company added that it will also provide the AI-powered software applications required to operate the technology in the long term.

Ocado will receive upfront payment during construction, as well as a final payment on installation. It will also receive an annual fee related to servicing and maintenance.

Chief Executive Tim Steiner said: ‘Today represents a new and exciting milestone as we bring the amazing benefits of Ocado’s technology to the healthcare distribution and logistics sector. Our technology is ideally suited to supply chains that require dense storage, highly accurate inventory management and secure stock control.

‘lt has been proven over 20 years in one of the most complex supply chain environments, online grocery, and we’re now bringing our experience and IP to more sectors. We are very pleased to be expanding in Canada.’

Ocado shares closed up 5.6% at 596.20 each on Monday in London.

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