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Naver, the South Korean search big, in the present day introduced it plans to accumulate secondhand attire market Poshmark for $1.2 billion in money. The deal values publicly-traded Poshmark’s shares at $17.90 — a 15% premium over the closing worth in the present day — and the businesses anticipate it to shut by Q3 2023, topic to approval by Poshmark stockholders and “the satisfaction of sure different customary closing situations.”
If the transaction goes by way of, Poshmark will change into a standalone subsidiary of Naver led by CEO Manish Chandra and Poshmark’s present administration crew. It’ll additionally proceed to function below its present model and keep its employees, consumer base, and headquarters in Redwood Metropolis, California.
In a press launch, Naver and Poshmark lay out a number of arguments for why the deal is sensible for each events. By buying Poshmark, Naver hopes to capitalize on the service’s rising social procuring platform, the place customers purchase and promote attire on-line, with its “technological prowess.” As for Poshmark, it putatively stands to learn from Naver’s sensible lens picture recognition and search applied sciences, which Naver says will enable the procuring platform to supply new search, advice and procuring experiences that permit customers discover attire by looking out colours, designs and supplies and figuring out the place to search out merchandise by scanning garments utilizing the digicam on their telephones.
Naver additionally touts its strong ad-serving and funds infrastructure, averring that Poshmark will be capable to leverage it to higher analyze gross sales statistics and serve worldwide clients. The long-term plan is to — with Naver’s backing — develop Poshmark’s enterprise into extra developed markets in Asia and elsewhere the place Naver has main enterprise holdings, partially by integrating a few of Naver’s dwell procuring companies with Poshmark’s platform.
Naver optimistically predicts the acquisition may develop Poshmark’s annual income “past” 20% and save the ecommerce firm $30 million in annual run price inside two years.
“The chance to affix forces with Naver — one of many world’s main and most revolutionary and profitable web firms — is a testomony to the energy of our model, working mannequin, and what we’ve constructed over the past decade with our gifted crew and superb group,” Poshmark CEO Manish Chandra stated in a press launch. “Our business continues to evolve at a speedy tempo, and we’re excited to proceed to steer the way forward for procuring by offering our group with an unparalleled expertise that’s easy, social, enjoyable and sustainable. This can be a extremely compelling alternative for our workers, who will profit from being half of a bigger, world group with shared values and complementary strengths. This transaction additionally delivers important and rapid worth to our shareholders. Long term, as a part of Naver, we are going to profit from their monetary sources, important expertise capabilities, and main presence throughout Asia to develop our platform, elevate our product and consumer experiences, and enter new and enormous markets. I stay up for partnering with Naver as we take our firm into its subsequent section of progress.”
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