By Patrick Seitz

Serve Robotics (SERV), a maker of sidewalk delivery robots, has agreed to acquire Diligent Robotics, a maker of robot assistants for the health care industry. Both Serve and Diligent robots use Nvidia (NVDA) processors and technology.

Late Tuesday, San Francisco-based Serve Robotics announced a deal to buy Diligent Robotics for $29 million, subject to adjustments, with a potential earn-out of up to $5.3 million upon the achievement of specified milestones.

Serve Robotics expects the deal to close in the first quarter.

The acquisition will allow Serve to expand into indoor environments, with hospitals a key market served by Diligent.

Diligent developed Moxi, an autonomous hospital delivery robot that supports nurses and medical staff. Moxi is deployed in over 25 hospital facilities across the U.S. Customers include leading hospitals and health care systems such as Northwestern Medicine, ChristianaCare, and Rochester General Hospital.

"This acquisition accelerates Serve's evolution from a robotic delivery company into a full-stack autonomy platform," Serve Chief Executive Ali Kashani said in a news release. "We've proven we can deploy robots safely and reliably at scale in complex urban environments. By extending our platform beyond sidewalks and into hospitals, we're expanding where our Physical AI can operate, learn, and create value."

In after-hours trading on the stock market today, Serve Robotics stock climbed about 3% to 13.75. In regular-session trading Tuesday, it dropped 9.9% to 13.36.

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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Sourced from Investor's Business Daily