WAL-MART and electricity supplier start-up company Jet.com announced yesterday that the two sides have reached a final agreement. Under the agreement, WAL-MART will be about $3 billion in cash to acquire Jet.com.
WAL-MART said that part of the $3 billion acquisition of cash will be gradually paid to Jet.com. In addition, as part of the acquisition, WAL-MART will gradually pay $300 million worth of Jet.com shares of the company.
WAL-MART and Jet.com will retain their brands. Among them, WAL-MART will focus on promoting the daily low price strategy, Jet.com will continue to provide a unique, differentiated user experience. WAL-MART and Jet.com will use both innovative technology solutions to develop new services for customers to save time and money.
the deal has been approved by the board of directors, also need to obtain regulatory approval, is expected to be completed this year.
with this deal, WAL-MART will strengthen its electricity supplier sector to better compete with Amazon and other online retailers. The news release shows that Jet.com users in the city and the millennial generation in the continuous growth, monthly increase of more than 40 million shoppers, the average daily order processing 25 thousand.
WAL-MART electricity supplier sales last year, nearly $14 billion, accounting for $482 billion of its annual revenue of $3%. Although the company was founded just over 20 years, but Amazon’s sales last year reached $107 billion, including network services.
informed sources said, Jet.com founder Mark · rolle (MarcLore) senior leadership positions will serve as the WAL-MART business, WAL-MART business manager Neal · arcia (Neil Ashe) is expected to leave. In 2012, WAL-MART joined the electricity supplier business executives.
WAL-MART shares rose 0.7% in pre trading, so far this year has risen by 20.3%, the standard & Poor’s 500 index rose by more than 6.8% this year.