1 year ago
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South Korean net elephantine Naver is acquiring U.S. e-retailer Poshmark for astir $1.2 billion, the companies announced Monday. Poshmark shares popped arsenic overmuch arsenic 14% successful extended trading.
Naver is paying $17.90 per stock successful the all-cash deal. Poshmark closed connected Monday astatine $15.57.
Naver operates a hunt engine, e-commerce level and different services successful South Korea. The companies said the woody volition deepen Naver's scope successful online retail, portion allowing Poshmark to participate planetary markets.
Poshmark is simply a fashionable online retail tract that lets radical store from the closets of different users. The institution went public successful January 2021 astatine $42 a share, hitting the marketplace astatine a clip erstwhile online buying was surging owed to the Covid-19 pandemic and investors were flocking to tech stocks.
Since then, the banal has fallen sharply, tumbling alongside the remainder of the tech industry.
Naver and Poshmark said they expect the woody to make "significant gross and outgo synergies," including re-acceleration of yearly gross maturation beyond 20% successful the adjacent term, arsenic ads amended monetization, investments turn overseas and unrecorded commerce gets greater adoption.
The woody adds to caller consolidation successful the secondhand covering market. Etsy acquired fashion resale app Depop for $1.62 cardinal past year. Depop competes with Poshmark and different resale services similar ThredUp.
The companies volition big a league telephone to sermon the woody astatine 9 p.m. ET connected Monday.
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