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South Korean internet giant Naver acquires US e-tailer posh mark for approximately $1.2 billion, companies announcement Monday. Poshmark shares jumped as much as 14% in extended trading.
Naver is paying $17.90 per share under the all-cash deal. Shares of the South Korean internet giant fell more than 7% in the Asian trading session, while Poshmark closed Monday at $15.57.
Naver operates a search engine, e-commerce platform and other services in South Korea. The companies said the deal will deepen Naver’s reach in online retail, while allowing Poshmark to enter international markets.
Poshmark is a popular online retail site that allows people to shop from other users’ closets. The company went public in January 2021 at $42 per share, hitting the market at a time when online shopping was increasing due to the Covid-19 pandemic and investors were flocking to tech stocks.
Since then, the stock has fallen sharply, falling alongside the rest of the tech industry.
Naver and Poshmark said they expect the deal to generate “significant revenue and cost synergies,” including a re-acceleration of annual revenue growth beyond 20% in the near term. , as ads improve monetization, overseas investment increases, and live commerce is increasingly adopted.
The deal comes on top of recent consolidation in the used clothing market. Etsy acquired fashion resale app Depop for $1.62 billion last year. Depop competes with Poshmark and other reselling services like ThredUp.
The companies will host a conference call to discuss the deal at 9 p.m. ET on Monday.
