Walmart Buys Hoboken-Based Jet.com For $3 Billion

HOBOKEN, NJ — Hoboken-based Jet.com will soon have a new owner… Walmart.

The two corporate giants announced the upcoming, $3 billion sale on Monday, stating that they have entered into a definitive agreement for Walmart to acquire Jet. A portion of the sale price will be “paid over time” and that the deal will include $300 million of Walmart shares.

Walmart officials stated in a news release that the company hopes the acquisition will help it fuel “faster e-commerce growth” by expanding customer reach and adding new capabilities.

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

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

Jet.com’s co-founder and CEO Marc Lore previously started e-commerce sites Diapers.com, Soap.com and Wag.com, and founded the company alongside Mike Hanrahan and Nate Faust.

According to a joint statement from both companies, Jet.com has reached the following watermarks:

• Reached $1 billion in run-rate Gross Merchandise Value (GMV) and offered 12 million SKUs in its first year
• Has a customer base that includes more than 400,000 new shoppers added monthly and an average of 25,000 daily processed orders
• Has a “select group” of more than 2,400 retailer and brand partners

“We started Jet with the vision of creating a new shopping experience,” Lore said. “Today, I couldn’t be more excited that we will be joining with Walmart to help fuel the realization of that vision.”

According to company spokespeople, Walmart and Jet will maintain distinct brands, with Walmart.com “focusing on delivering the company’s Everyday Low Price strategy” and Jet will “continuing to provide a unique and differentiated customer experience with curated assortment.”

Jet.com launched in July of 2015 following a much-heralded capital campaign that raised hundreds of millions of dollars in venture capital, including a large cash influx from multi-national Chinese powerhouse, Alibaba Group.

• See related article: Hoboken-Based Online Retailer Jet.com Launches, Will Compete With Amazon
• See related article: Montclair-Based Company Gets Large Cash Influx from Chinese Investors

Jet.com has since moved its corporate headquarters from Montclair to Hoboken. It announced in March that it would be doubling the size of its headquarters at Waterfront Corporate Center III in Hoboken.

• See related article: Hoboken's Jet.com Will Double HQ Size At Waterfront Corporate Center

Photo: Mike Mozart, Flickr Commons

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