Walmart is buying cloud computing provider Cloud Computing Services, according to a report from Bloomberg.
The company will pay $1.2 billion for the company and will also acquire two cloud-based platforms, the Wall Street Journal reported, citing people familiar with the matter.
Cloud computing services have become a hot topic this year with Amazon, Google, and others looking to use it to expand their services.
Amazon, which was valued at $66 billion in 2016, will also have a presence on Amazon Web Services.
The move comes as Amazon is expanding its cloud business.
The company has launched the Amazon Cloud Platform, which offers virtual private cloud (VPC) service that lets businesses host and manage software, databases, and other data.
The $1 billion deal with Cloud Computing Technologies also brings Walmart to the cloud, the WSJ reported, with the cloud computing services offering being valued at roughly $3 billion.
Walmart will also offer Amazon’s AWS service, which lets businesses access AWS’s network and use its services.
The deal is expected to close by the end of 2020.