The nation’s largest brick and mortar retailer said the deal positions it for expanded e-commerce growth.
The nation’s largest brick and mortar retailer Wal-Mart Stores, Inc. has agreed acquire Jet.com for $3.3 billion in a deal that Walmart said positions it for expanded e-commerce growth.
Walmart will pay approximately $3 billion in cash and $300 million in Walmart shares, with a portion of the cash and stock paid over time. Both companies will maintain distinct brands.
“The acquisition will build on and complement the significant foundation already in place to serve customers across the Walmart app, site and stores and position the company for even faster e-commerce growth in the future by expanding customer reach and adding new capabilities,” Walmart said.
The acquisition, which is subject to regulatory approval, has been approved by the board of directors for both companies and is expected to close this calendar year.
“We’re looking for ways to lower prices, broaden our assortment and offer the simplest, easiest shopping experience because that’s what our customers want,” Walmart President and CEO Doug McMillon said. “We believe the acquisition of Jet accelerates our progress across these priorities.”
For the fiscal year ended Jan. 31, 2016, Walmart’s total revenues reached $482.1 billion, while Jet was expected to have sales of $1 billion this year according to a report from internetretailer.com.
Walmart agrees to $3b acquisition of Jet.com
