Wal-Mart Stores announced Monday that it will acquire e-commerce company Jet.com for $3.3 billion as it beefs up its online retail operations in response to Amazon and other companies.

Wal-Mart is paying $3 billion in cash for the online retailer. Shareholders of Jet.com, which was launched in July 2015, will also receive $300 million in Wal-Mart shares, Wal-Mart said.