Brick-and-mortar giant PetSmart has acquired ecommerce firm Chewy.com for what Recode believes was more than $3 billion in cash.
It’s the latest in a trend of physical incumbents scooping up internet-based startups to bolster their digital portfolio. Last year, for example, Walmart bought Jet.com for multiple billions.
If the price tag is truly north of $3 billion, that would make it the largest ecommerce sale ever, surpassing Walmart’s Jet purchase.
Chewy, which sells all manner of pet products online, was founded in 2011. Last year, the company generated nearly one billion dollars in sales, a figure that it expected to increase significantly this year.
PetSmart, with 1,500 brick-and-mortar location across North America, says that Chewy will continue to operate as an independent subsidiary for the foreseeable future. Since going private for $8.7 billion in 2014, PetSmart has been boosting its digital operations.