December 6, 2022

South Korea's Naver buys US retailer Poshmark for $1.2 billion

South Korea’s Naver buys US retailer Poshmark for $1.2 billion

Rafael Henrique | Light Rocket | Getty Images

South Korean internet giant Naver acquires US electronic retailer Bushmark For roughly $1.2 billion, for businesses announce Monday. Poshmark shares are up as much as 14% in extended trading.

Naver pays $17.90 per share in the all-cash transaction. Poshmark closed Monday at $15.57.

Naver operates a search engine, e-commerce platform, and other services in South Korea. The two companies said the deal would deepen Naver’s reach in online retail, while allowing Poshmark to enter international markets.

Poshmark is a popular online retail website that allows people to shop from other users’ lockers. company audience went In January 2021 at $42 a share, it hit the market at a time when online shopping was on the rise due to the Covid-19 pandemic and investors were flocking to tech stocks.

Since then, the stock has fallen sharply, falling along with the rest of the tech industry.

Naver and Poshmark said they expect the deal to generate “significant revenue and cost synergies,” including re-accelerating annual revenue growth in excess of 20% in the near term, as advertising improves monetization, investments grow overseas and live trade gains greater adoption. .

The deal adds to the recent consolidation in the used clothing market. Etsy acquired Fashion reselling app Depop for $1.62 billion last year. Depop competes with Poshmark and other resale services such as ThredUp.

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

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