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

South Korean web big Naver is buying U.S. e-retailer Poshmark for roughly $1.2 billion, the businesses introduced Monday. Poshmark shares popped as a lot as 14% in prolonged buying and selling.

Naver is paying $17.90 per share within the all-cash deal. Poshmark closed on Monday at $15.57.

Naver operates a search engine, e-commerce platform and different providers in South Korea. The businesses stated the deal will deepen Naver’s attain in on-line retail, whereas permitting Poshmark to enter worldwide markets.

Poshmark is a well-liked on-line retail web site that lets folks store from the closets of different customers. The corporate went public in January 2021 at $42 a share, hitting the market at a time when on-line purchasing was surging as a result of Covid-19 pandemic and traders have been flocking to tech shares.

Since then, the inventory has fallen sharply, tumbling alongside the remainder of the tech trade.

Naver and Poshmark stated they anticipate the deal to generate “vital income and value synergies,” together with re-acceleration of annual income development past 20% within the close to time period, as advertisements enhance monetization, investments develop abroad and stay commerce will get better adoption.

The deal provides to latest consolidation within the secondhand clothes market. Etsy acquired style resale app Depop for $1.62 billion final yr. Depop competes with Poshmark and different resale providers like ThredUp.

The businesses will host a convention name to debate the deal at 9 p.m. ET on Monday.

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