GameStop Corp and Microsoft Corp on Thursday signed a multi-year partnership agreement under which the videogame retailer will use the software maker's cloud and hardware services to streamline its business.

Gamestop's shares surged about 20% in afternoon trading after it said it would move its back-end and in-store operations to Microsoft's Dynamics 365 platform, which is a set of cloud-based business applications and customer data platform.

This would allow Gamestop's store associates access to omni-channel insights including customer preferences, purchasing history, product availability and subscriptions, the company said in a statement.

GameStop, which did not disclose the terms of the deal, said it planned to roll out Microsoft's 365 services and workplace messaging app Teams in its stores and equip store associates with new Surface devices.