Thursday, December 8, 2022
HomeUS NewsSouth Korea's Naver to buy U.S. e-commerce web site Poshmark for $1.2...

South Korea’s Naver to buy U.S. e-commerce web site Poshmark for $1.2 billion – IHNS

Rafael Henrique | LightRocket | Getty Photos

South Korean net massive Naver is shopping for U.S. e-retailer Poshmark for roughly $1.2 billion, the companies launched Monday. Poshmark shares popped as so much as 14% in extended shopping for and promoting.

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

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Naver operates a search engine, e-commerce platform and totally different corporations in South Korea. The companies talked about the deal will deepen Naver’s attain in on-line retail, whereas allowing Poshmark to enter worldwide markets.

Poshmark is a popular on-line retail web site that lets people retailer from the closets of various clients. The company went public in January 2021 at $42 a share, hitting the market at a time when on-line procuring was surging due to the Covid-19 pandemic and merchants have been flocking to tech shares.

Since then, the stock has fallen sharply, tumbling alongside the rest of the tech enterprise.

Naver and Poshmark talked about they depend on the deal to generate “important earnings and worth synergies,” along with re-acceleration of annual earnings improvement previous 20% inside the near time interval, as adverts improve monetization, develop overseas and reside commerce will get bigger adoption.

The deal gives to newest consolidation inside the secondhand garments market. Etsy acquired type resale app Depop for $1.62 billion last 12 months. Depop competes with Poshmark and totally different resale corporations like ThredUp.

The companies will host a conference title to debate the deal at 9 p.m. ET on Monday.

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