In the largest-ever deal for an e-commerce startup, Walmart will pay around $3 billion for Jet.com and its pricing software.
The deal was disclosed on Monday, with Walmart paying close to $3 billion in cash and $300 million in shares, Reuters reports. Launched in July 2015, Jet.com's software offers customers lower prices as they add items to their cart. "One of the things we really like is that the customer is even more in-charge of the price that they pay," Walmart CEO Doug McMillon said Monday during a media call.
The company is looking to challenge Amazon, and has already purchased 15 startups over the last five years. Jet.com's revenue is about $500 million, and its founder, Marc Lore, will stay on to run Walmart's new U.S. e-commerce business. Walmart said it plans to keep Jet.com a separate entity from Walmart.com, which will embrace Jet.com's software.
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