Walmart has confirmed it is acquiring e-commerce site Jet.com for $3 billion in cash, and an additional $300 million of Walmart shares to be paid over time. While initial reports of the acquisition began late last week, Walmart released its official announcement today.
Subject to regulatory approval, the deal has been approved by the boards of directors of both Walmart and Jet.com, and it is anticipated to close by the end of this year.
Walmart and Jet will maintain distinct brands, with Walmart.com focusing on delivering the company’s Everyday Low Price strategy, while Jet will continue to provide a unique and differentiated customer experience with curated assortment.
The acquisition positions Walmart to be a more competitive player in the e-commerce space. According to the release, Jet.com currently takes in an average of 25,000 daily processed orders, has over 2,400 retailer and brand partners and adds more than 400,000 new shoppers monthly.
“We believe the acquisition of Jet accelerates our progress across these priorities,” says Walmart president and CEO Doug McMillon in the release. “Walmart.com will grow faster, the seamless shopping experience we’re pursuing will happen quicker, and we’ll enable the Jet brand to be even more successful in a shorter period of time.”
Walmart’s release also included statements from Jet.com president Marc Lore, who said he couldn’t be more excited about the deal.
“The combination of Walmart’s retail expertise, purchasing scale, sourcing capabilities, distribution footprint, and digital assets – together with the team, technology and business we have built here at Jet — will allow us to deliver more value to customers,” says Lore.
Jet.com was launched in 2014 by co-founders Marc Lore, Mike Hanrahan and Nate Faust.
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Author: Amy Gesenhues