American retailer Walmart has agreed to acquire e-commerce company Jet for approximately $3 billion in cash, as well as $300 million of Walmart shares, which will be paid “over time”.
The acquisition will complement the significant foundation already in place to serve customers across the Walmart app, website 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.
It added that the acquisition would “infuse Walmart with fresh ideas and expertise, as well as an attractive brand with proven appeal, especially with millennials”.
Among other things, Jet has demonstrated its ability to scale with speed, and has a growing base of urban and millennial customers with more than 400,000 new shoppers added each month; best-in-class technology that rewards customers in real time with savings on items that are bought and shipped together, which reduces supply-chain and logistics costs; plus a select group of more than 2,400 retail and brand partners tailored to create an attractive and distinctive assortment for consumers.
“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,” said Doug McMillon, president and CEO of Walmart. “We believe the acquisition of Jet accelerates our progress across these priorities. 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.”
“We started Jet with the vision of creating a new shopping experience,” added Lore. “Today, I couldn’t be more excited that we will be joining with Walmart to help fuel the realisation of that vision. 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.”
Walmart and Jet will maintain distinct brands, with Walmart’s website 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. Walmart and Jet will leverage innovative technology solutions from both companies to develop new offerings to help customers save time and money, Walmart claimed.
It said that it was confident that it would obtain all necessary regulatory approval with regards to the deal.
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