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 mentioned Tuesday.
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The deal — price about $1.6 billion in complete when Poshmark’s money holdings are included, in keeping with Naver — is anticipated to shut by the primary quarter of 2023, the corporations mentioned.
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 firms share a standard set of values and imaginative and prescient round content material, neighborhood and empowerment,” Choi Soo-yeon, chief govt officer of Naver, mentioned 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 progressive and profitable web firms”, and mentioned the transaction delivers “vital and rapid worth to our shareholders”.
“As a part of Naver, we are going to profit from their monetary sources, vital know-how capabilities, and main presence throughout Asia to develop our platform,” Chandra added.
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The resale market notably noticed a pandemic-time growth because it prompted these below quarantine to wash out their closets and resell objects they now not needed.
The deal will permit Naver to “capitalise on the rising shopper shift in style to on-line re-commerce”, the corporations mentioned.
On-line clothes resale is an $80 billion market right this moment within the US alone, and is anticipated to develop yearly to $130 billion by 2025, in keeping with Activate Consulting.
The South Korean agency acquired Wattpad, a Toronto-based on-line storytelling platform, for about $600 million final yr.
