By
Reuters
Published
Oct 4, 2022
Download
Download the article
Print
Text size

Poshmark acquired by South Korea's Naver

By
Reuters
Published
Oct 4, 2022

South Korean tech firm Naver Corp said on Tuesday it agreed to a $1.6 billion deal to buy Poshmark Inc, a U.S. apparel resale platform firm, as a strategic investment to enter the U.S. e-commerce market.


The $1.6 billion includes consideration for Poshmark's cash holdings, and the enterprise value of Poshmark is about $1.2 billion - Facebook: Poshmark


Naver will acquire all of the issued and outstanding shares of Poshmark for $17.90 in cash. The deal is expected to close in the first quarter of next year.

The $1.6 billion includes consideration for Poshmark's cash holdings, and the enterprise value of Poshmark is about $1.2 billion, a Naver spokesperson said.

Poshmark is the largest fashion consumer-to-consumer platform in North America, with 80 million registered users led by Millenial and Gen Z active users, Naver and Poshmark said in a conference call about the deal.

The deal will combine Poshmark's shopping platform with Naver's technology including image recognition, artificial intelligence and live streaming, a key driver of e-commerce in South Korea, the companies said in a statement.

The companies plan to target an $80 billion market in online fashion "re-commerce" in the U.S., which is expected to grow by 20% annually to $130 billion by 2025, according to Activate Consulting.

Poshmark shares jumped 14% to $17.8 in after-hours trading on Monday. However, shares in Naver fell 5.2% as of 0120 GMT, versus a rise of 2.3% in the wider market.

Naver acquired North American online literature platform Wattpad for about $600 million last year.

 

© Thomson Reuters 2024 All rights reserved.