Wal-Mart Stores Inc. on Monday said it has completed the acquisition of internet retailer Jet.com after agreeing to pay about $3 billion for the ecommerce startup last month.
Wal-Mart Chief Executive Doug McMillon announced the closing of the deal, which was pending regulatory approval, in a blog post on the retailer's website.
The acquisition will impact Wal-Mart's 2017 fiscal year earnings marginally more than the retailer's initial estimate of a 5 cents per share impact as the transaction closed ahead of time, Wal-Mart said.
The deal, which was the largest for an online startup, will give Wal-Mart access to Jet.com's innovative pricing software and will help the Bentonville, Arkansas-based retailer to better compete with online rival Amazon.com Inc.
"A lot of folks ask me 'Why Jet.com?," McMillon said in a blog post. The answer he said was in the savings both Wal-Mart and Jet can together offer shoppers.
Jet, with its ability to lower prices as customers add more items to their shopping carts, will help the world's largest retailer reach more customers such as millennial shoppers.
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Jet's founder Marc Lore will join Wal-Mart as the president and chief executive of Wal-Mart's U.S. ecommerce business and will report to McMillon, the company said in a separate statement.
"I'll be spending a lot of time with the team in the coming weeks and months focused on scaling Walmart.com and Jet.com," Lore said.
Over a five-year period Lore will receive stock units that involve the issuance of 3.55 million shares of Wal-Mart's common stock valued at 10 cents per share, the statement said
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