Wal-Mart announced Monday that it will buy e-commerce company Jet.com for $3.3 billion.

As part of the deal, the boards of both companies agreed Walmart will pay Jet.com $3 billion in cash, while $300 million of the retail giant’s shares will be paid to the latter over time.

The deal is an attempt by Walmart to catch Amazon by trying to increase its growth through online and mobile application sales.

“We’re looking for ways to lower prices, broaden our assortment and offer the simplest, easiest shopping experience because that’s what our customers want,” Doug McMillon, president and CEO of Wal-Mart Stores, Inc., said in a statement.

“We believe the acquisition of Jet accelerates our progress across these priorities. Walmart.com will grow faster, the seamless shopping experience we’re pursuing will happen quicker, and we’ll enable the Jet brand to be even more successful in a shorter period of time,” he added.

Both companies will retain their distinct brands, according to the statement.

Wan-Mart posted revenues of $428 billion in 2015, with just $14 billion from online sales.

Although Amazon had lower revenues at $107 billion, the company is the top retailer in online sales.

After the deal was announced, Wal-Mart shares on Wall Street fell 1 percent during trading hours to as low as $73.04. Jet.com’s stock soared as high as $2 from previous close of $0.57. (Anadolu Agency)

•Photo shows Wal-Mart President/CEO Doug McMillon.