South Korea-based Naver is to acquire U.S.-based c-to-c secondhand fashion marketplace Poshmark in a deal worth $1.2 billion U.S., according to a statement issued by the former. Poshmark had revenue of $89 million U.S. during the three months to June 2022, and the deal values it at $17.90 per share — a 48% premium on the 90-day volume weighted average price of its shares.

With this acquisition, which is expected to close in the first quarter of next year, internet conglomerate Naver will establish a global c-to-c portfolio that spans South Korea, Japan, Southeast Asia, Europe and North America. Poshmark will retain its brand identity in North America, Australia and India.

Naver runs sneaker marketplace Kream in South Korea, in addition to Vintage City, an app for used clothing in Japan. The company is also growing in Europe through its investment in luxury used fashion marketplace Vestiaire Collective.

“By working with Poshmark, the number-one c-to-c fashion platform in North America … Naver has laid an important part of the foundation for a broader understanding of Gen Z in North America, the core of the next-generation market … by utilizing Naver’s search and AI recommendation and vision technology, live commerce and community and advertising platforms, we will provide an innovative experiences to users of Poshmark,” said Naver CEO Soo Yeon Choi (LinkedIn profile).

“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,” Manish Chandra, founder and CEO of Poshmark (LinkedIn profile) said in a separate media statement.

“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. This transaction also delivers significant and immediate value to our shareholders. 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. I look forward to partnering with Naver as we take our company into its next phase of growth.”

Print Friendly, PDF & Email

Related Articles