Walmart can no longer lay claim to the largest e-commerce acquisition ever as that distinction now belongs to PetSmart. On Tuesday, the pet supplies specialist announced intentions to purchase online pet food and products retailer Chewy.com.
Terms of the deal weren't disclosed although sources reportedly familiar with the transaction tell Re/code the deal is valued at $3.35 billion.
Walmart, if you recall, shelled out $3.3 billion in cash for Jet.com last summer.
Founded in 2011 by Ryan Cohen and Michael Day, Chewy has enjoyed incredible growth in a relatively short amount of time. Last year alone, the company generated revenue of nearly $900 million but was still not profitable.
PetSmart in a press release said the acquisition accelerates the execution of its strategy and is a critical milestone in its transformational journey to be the most convenient, best-in-class pet retailer. Coming together will enhance both companies' capabilities and reach, PetSmart said, adding that it'll offer the widest selection of pet products and services available both in-store and online in North America.
The acquisition, which is subject to customary regulatory approval, is expected to close by the end of PetSmart's second fiscal quarter of 2017. PetSmart said it plans to operate Chewy largely as an independent subsidiary that'll continue to be led by Cohen who currently serves as CEO.
Image courtesy PetSmart