WalMart buys digital rival Jet.com for $3bn in cashStaff Writer | August 8, 2016
Walmart announced the purchase of Jet.com for $3bn in cash and $300m in shares. The company said the deal would boost its e-commerce drive by expanding its customer reach and adding new capabilities.
Acquisition The promise of fresh ideas and expertise
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. ■