Secondhand fashion marketplace Poshmark acquired in billion dollar deal
Poshmark has agreed to be acquired in a deal valued at approximately $1.2 billion.
South Korean internet giant Naver Corp. is acquiring the U.S. online resale site for $17.90 per share in an all-cash deal. In a release, the two companies said they expect the agreement to generate “significant revenue and cost synergies.”
The deal comes as online sales of secondhand goods continue to surge. The market is expected to grow by 20% annually to $130 billion by 2025, according to Activate Consulting. The companies said the deal will deepen Naver’s reach in online retail, while allowing Poshmark to expand enter international markets.
Poshmark has more than 80 million registered users, mostly in the U.S., Canada, Australia and India.
“The opportunity to join forces with Naver – one of the world’s leading and most innovative and successful internet companies – is a testament to the strength of our brand, operating model, and what we’ve built over the last decade with our talented team and amazing community,” said Manish Chandra, founder and CEO, Poshmark, which went public last year. “This is a highly compelling opportunity for our employees, who will benefit from being part of a larger, global organization with shared values and complementary strengths. Longer term, as part of Naver, we will benefit from their financial resources, significant technology capabilities, and leading presence across Asia to expand our platform, elevate our product and user experiences, and enter new and large markets.”
Naver started out as a search engine. But it has since expanded into e-commerce platform, email, messaging and other services in South Korea — its website and mobile apps are among the most popular in that country. The company is sometimes referred to as the “Google of South Korea.”
Beyond its home country, Naver has expanded into Japan. Last year, it made its first North American acquisition, acquiring Wattpad, a Toronto company that offers a platform for reading and writing original stories.
In a statement, Naver CEO Choi Soo-Yeon said the combination of Poshmark and Naver will create “the strongest platform for powering communities and re-fashioning commerce.” He added that Naver’s leading technology in search, AI recommendation and e-commerce tools will help power the next phase of Poshmark’s global growth.
“Bringing Naver and Poshmark together will immediately put us at the forefront of creating a new, socially responsible, and sustainable shopping experience designed around sellers of all sizes and interests – from individual and influencer sellers to professional sellers, brands and specialty boutiques – and a large, loyal, and highly engaged social community,” he continued.