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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 firms mentioned 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 individuals store from the closets of different customers. The firm went public in January 2021 at $42 a share, hitting the market at a time when on-line buying was surging due to the Covid-19 pandemic and buyers had been flocking to tech shares.
Since then, the inventory has fallen sharply, tumbling alongside the remainder of the tech business.
Naver and Poshmark mentioned they count on the deal to generate “significant revenue and cost 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 higher adoption.
The deal provides to current consolidation within the secondhand clothes market. Etsy acquired style resale app Depop for $1.62 billion final 12 months. Depop competes with Poshmark and different resale providers like ThredUp.
The firms will host a convention name to talk about the deal at 9 p.m. ET on Monday.
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