Walmart has snapped up Snapfish, a startup that makes fishing poles for fishing and fishing accessories, for $1.1 billion in cash.
The deal is worth $1 billion over the next three years, according to a filing by the Securities and Exchange Commission.
The purchase price represents a 26% premium over Snapfish’s closing price on Wednesday, according the filing.
Snapfish co-founder and CEO Chris Dixon said in a statement that the deal is a win for Walmart, which has struggled to bring more than 2 million fishing equipment orders a year to the marketplace.
The price per unit will go up $20 per month for the next year.
The company also will be able to offer discounts to Walmart customers who purchase the poles directly from Snapfish.
Walmart will have a presence in both the U.S. and China, Dixon said.
The deal will also benefit the company by expanding its U.K. store network, he said.