SEOUL
South Korean web large Naver is shopping for Poshmark, a U.S. on-line market for used clothes, for roughly $1.2 billion, the businesses stated Tuesday.
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The deal — price about $1.6 billion in complete when Poshmark’s money holdings are included, in response to Naver — is anticipated to shut by the primary quarter of 2023, the companies stated.
Naver operates a extremely influential search engine and e-commerce platform in South Korea, and is paying $17.90 a share in an all-cash deal.
“Poshmark is a pure match for our enterprise — our two corporations share a typical set of values and imaginative and prescient round content material, neighborhood and empowerment,” Choi Soo-yeon, chief govt officer of Naver, stated in an announcement.
“Bringing Naver and Poshmark collectively will instantly put us on the forefront of making a brand new, socially accountable, and sustainable procuring expertise designed round sellers of all sizes and pursuits.”
Poshmark CEO Manish Chandra known as the South Korean agency “one of many world’s main and most revolutionary and profitable web corporations”, and stated the transaction delivers “important and fast worth to our shareholders”.
“As a part of Naver, we are going to profit from their monetary sources, important know-how capabilities, and main presence throughout Asia to broaden our platform,” Chandra added.
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The resale market significantly noticed a pandemic-time growth because it prompted these underneath quarantine to scrub out their closets and resell objects they now not needed.
The deal will permit Naver to “capitalise on the growing shopper shift in vogue to on-line re-commerce”, the companies stated.
On-line clothes resale is an $80 billion market right now within the US alone, and is anticipated to develop yearly to $130 billion by 2025, in response to Activate Consulting.
The South Korean agency acquired Wattpad, a Toronto-based on-line storytelling platform, for about $600 million final 12 months.
