The two companies involved in the largest e-commerce acquisition in history share an interest in pets. Recode reports that PetSmart is acquiring Chewy.com for $3.35 billion.
The deal is reportedly larger than Walmart’s acquisition last year of Jet.com, which was valued at $3.3 billion.
“Chewy.com has been one of the fastest-growing e-commerce sites on the planet, registering nearly $900 million in revenue last year, in what was only its fifth year in operation,” Recode notes. “The company had been a potential IPO candidate for this year or next, but was taken out by its brick-and-mortar competitor before that. It was not profitable last year.”
Recode adds: “Chewy was founded in 2011 by Ryan Cohen and Michael Day, and built a cult following for its excellent customer service, large selection and fast shipping. It had quietly raised at least $236 million in venture capital from investors including Volition Capital, T. Rowe Price and BlackRock.”