South Korea’s Naver to buy U.S. e-retailer Poshmark for $1.2 billion

South Korean web huge Naver is obtaining U.S. e-retailer Poshmark for roughly $1.2 billion, the providers announced Monday. Poshmark shares popped as a lot as 14% in extended trading.

Naver is having to pay $17.90 per share in the all-hard cash offer. Poshmark closed on Monday at $15.57.

Naver operates a research motor, e-commerce platform and other solutions in South Korea. The businesses explained the deal will deepen Naver’s access in on the internet retail, although enabling Poshmark to enter global marketplaces.

Poshmark is a well-liked on the net retail web site that allows folks store from the closets of other end users. The company went community in January 2021 at $42 a share, hitting the market place at a time when on the internet buying was surging because of to the Covid-19 pandemic and buyers were flocking to tech stocks.

Because then, the inventory has fallen sharply, tumbling along with the relaxation of the tech industry.

Naver and Poshmark stated they anticipate the offer to generate “sizeable revenue and value synergies,” together with re-acceleration of yearly profits advancement outside of 20% in the in the vicinity of time period, as adverts strengthen monetization, investments improve abroad and dwell commerce will get larger adoption.

The deal provides to the latest consolidation in the secondhand apparel market place. Etsy acquired fashion resale application Depop for $1.62 billion final 12 months. Depop competes with Poshmark and other resale products and services like ThredUp.

The providers will host a convention phone to examine the offer at 9 p.m. ET on Monday.

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