Wal-Mart Stores Inc. (NYSE: WMT) agreed to acquire Jet.com Inc. for $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 deal is intended to position Walmart for faster e-commerce growth and to better compete against Amazon. The acquisition, which is subject to regulatory approval, has been approved by the boards of directors of both companies and is expected to close this calendar year.

“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 Wal-Mart president and CEO Doug McMillon. “We believe the acquisition of Jet accelerates our progress across these priorities. Walmart.com will grow faster, the seamless shopping experience we’re pursuing will happen quicker, and we’ll enable the Jet brand to be even more successful in a shorter period of time. Our customers will win. It’s another jolt of entrepreneurial spirit being injected into Walmart.”

Jet is among the fastest growing e-commerce companies in the US, with an experienced leadership team led by co-founder and CEO Marc Lore, together with fellow co-founders Mike Hanrahan and Nate Faust. The startup was founded in 2013 and is headquartered in Hoboken, N.J. Jet has previously raised $570 million in in five funding rounds led by Fidelity Investments, Bain Capital, Western Technology Investment and New Enterprise Associates, including $5 million in debt financing from Silicon Valley Bank.

“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.”

Nearly 260 million customers and members visit Walmart’s 11,527 stores weekly, under 63 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2016 revenue of $482 billion, Walmart employs more than 2.3 million associates worldwide. Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in 1962. Walmart has a market capitalization of $230 billion.

Financial advisors to Walmart on this transaction were Allen & Company and J.P. Morgan Securities LLC.

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