K-Mart buys instant e-commerce giant Cracco for $3 billion

K-mart, the nation’s largest retailer, is buying online-commerce firm Cracco, a division of eBay Inc. for $2.7 billion in cash and stock, the company said in a statement on Friday.

Cracco said it would continue operations under a new management team that includes longtime K-Mobile execs and a former chief financial officer.

The deal will create a global, e-retail leader that is backed by the same expertise as the parent company, K-Marts parent Kmart.

Craco, based in the Netherlands, had about 2.3 million stores, according to the company’s 2016 annual report.

K- Mart, which operates more than 3,000 stores in the U.S., Britain, Canada, Australia and New Zealand, was valued at about $3.6 billion in 2016.

Kmart said the acquisition includes about 1,200 stores in Australia and 1,000 in the United States.

Crutchfield Group Holdings Inc. , a company that sells hardware, software and consumer electronics, also bought Cracco.

The move could boost Kmart’s revenue from online sales, which have been growing but are still down in the second quarter from the previous year, Kmart CEO Kevin Murphy said in the statement.

Cricketsons products include electronic cigarettes and the Crutchfields Vaporizer, a portable e-cigarette that’s designed to be a “personal vaporizer” for vaporizing foods.

Kmarts revenue has also been shrinking.

It posted a net loss of $1.4 billion in the third quarter, down from a $2 billion loss in the first quarter, according the company.

The company also reported a $1 billion loss on its financial statement for the first three months of this year.

Cracys revenue also is down from the second half of the year.

KMarts shares were down 2.4 percent at $32.90 in midday trading on Friday, before the news was announced.

KMart shares were up 7.3 percent at 2,739.99 in early trading in New York.