South Korean Internet giant Naver Corp is buying Poshmark Inc, a US online marketplace for used clothing, for about US$1.2 billion, the companies said yesterday.
The deal — worth about US$1.6 billion in total when Poshmark’s cash holdings are included, according to Naver — is expected to close by the first quarter of next year, the firms said.
Naver operates a search engine and e-commerce platform in South Korea, and is paying US$17.90 per share in an all-cash deal.
“Poshmark is a natural fit for our business — our two companies share a common set of values and vision around content, community and empowerment,” Naver chief executive officer Choi Soo-yeon said in a statement. “Bringing Naver and Poshmark together will immediately put us at the forefront of creating a new, socially responsible, and sustainable shopping experience designed around sellers of all sizes and interests.”
Poshmark CEO Manish Chandra called the South Korean firm “one of the world’s leading and most innovative and successful Internet companies,” and said that the transaction delivers “significant and immediate value to our shareholders.”
“As part of Naver, we will benefit from their financial resources, significant technology capabilities and leading presence across Asia to expand our platform,” Chandra said.
The resale market particularly saw a boom amid the COVID-19 pandemic as it prompted those under quarantine to clean out their closets and resell items they no longer wanted.
The deal would allow Naver to “capitalize on the increasing consumer shift in fashion to online recommerce,” the firms said.
Online clothing resale is an US$80 billion market in the US alone and is expected to grow annually to $130 billion by 2025, Activate Consulting said.
The South Korean firm acquired Wattpad, a Toronto-based online storytelling platform, for about US$600 million last year.
Naver shares were down 8.53 percent yesterday afternoon in Seoul, their lowest since April 2020.
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