WalMart buys digital rival Jet.com for $3bn in cash
"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. Our customers will win. It's another jolt of entrepreneurial spirit being injected into Walmart," the U.S. retailing giant's chief, Doug McMillon, said.
Part of the cash consideration was to be paid over time as would the share-based component of the transaction. The boards of both companies had already approved the purchase.
Among Jet's main attractions were the promise of fresh ideas and expertise that Walmart would be able to build upon.
Jet had already demosntrated its ability to scale with ease, hitting a Gross Merchandise Value run-rate of $1bn and offering 12m SKUs in its first year.
It was adding urban and millenial customers at a fast clip too, with 400,000 new shoppers monthly and an average 25,000 of daily processed orders.
Both companies would also leverage their technology solutions with a view to developing and delivering new offerings to their customers to help customers save time and money, Walmart said. ■