Confirming reports that leaked out last week, Wal-Mart Stores Inc. is set to acquire fledgling Jet.com and its Hayneedle home furnishings subsidiary by yearend.

Walmart has been looking to more aggressively compete in e-commerce, particularly against Amazon, and enhance capabilities in the online arena.

Wal-Mart entered into a definitive agreement to purchase Jet for about $3 billion in cash – a portion of which will be paid over time. Additionally, $300 million of Walmart shares will be paid over time as part of the transaction, the company noted.

The acquisition, which is subject to regulatory approval, has been approved by the boards of directors for both companies and is expected to close this calendar year.

Hoboken, N.J.-based Jet.com launched last fall – less than a year ago – but in April made its first acquisition – Hayneedle.com, a home furnishings site that was founded in 2002.

“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, Wal-Mart Stores, Inc. “We believe the acquisition of Jet accelerates our progress across these priorities.”

Via the acquisition, Walmart.com will grow faster and improve a seamless shopping experience, he added. “And we’ll enable the Jet brand to be even more successful in a shorter period of time.”

Walmart and Jet will maintain distinct brands, with Walmart.com focusing on delivering its “Everyday Low Price” strategy and Jet continuing to provide a curated assortment. Walmart and Jet will leverage technology solutions from both companies to develop new offerings.

“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,” said Jet.com ceo Marc Lore, who co-founded the company with Mike Hanrahan and Nate Faust.

(Source: Home Textiles Today)