NEW YORK (TheStreet) -- Shares of Walmart (WMT) - Get Report were slightly lower in after-hours trading on Monday as the Bentonville, AR-based discount retail giant finalized its $3 billion all-cash purchase of the e-commerce site Jet.com.
Walmart said the acquisition is expected to expand its e-commerce division and is "intended to help accelerate growth."
The companies will operate as separate brands, Walmart noted.
Marc Lore, CEO of Jet.com, will now become executive VP of Walmart and CEO of Walmart's e-commerce unit in the U.S. He will continue leading Jet.com.
The deal is the largest for an online startup and will give Walmart access to Jet.com's pricing software, Reuters reports. It will also provide Walmart better leverage against e-commerce rival Amazon.com (AMZN).
Jet.com is a privately held company based in Hoboken, NJ.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Walmart as a Buy with a ratings score of B. This is driven by a number of strengths, which it believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. The team feels its strengths outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: