Walmart will sell the Polaroid Camera sensor camera and $20m of other sensor and lighting equipment for $20million, according to a statement from the company.
The camera will be sold to a joint venture between the company and Kodak.
“This deal will allow Walmart to accelerate its growth in digital imaging with a platform that has been essential to its success,” Walmart Chief Executive Tom Barrett said in a statement.
“As the largest consumer electronics retailer in the US, we see the potential for digital imaging to help us drive innovation and make our customers more productive and efficient.”
The company, which is the world’s largest manufacturer of digital cameras, has already built up a $3.5bn (£2.5billion) business in digital photography, but this is the first major acquisition of its kind in the company’s history.
The acquisition will allow the company to accelerate growth in the digital imaging business, said the company in the statement.
It comes as Walmart has already rolled out new software for its own devices, and has also announced a plan to introduce new digital camera models, including a $50-a-month smartphone camera and a $1,000-a-$1,500-a month home video camera.
Walmart has been struggling to make inroads in digital cameras as demand for its products has waned.
The company has long been focused on selling cameras for its employees.
In 2016, Walmart bought the digital video camera business of Fujifilm.