South Korean internet giant Naver is acquiring US e-retailer Poshmark for approximately US $ 1.2 billion in an all-cash transaction.
Poshmark is the largest fashion consumer-to-consumer platform, with 80 million registered users, majority of whom are Millennials and Gen Z.
Reportedly, Naver is paying US $ 17.90 per share, making this its largest M&A transaction to date.
In South Korea, Naver runs a search engine, an e-commerce platform and other services. According to the firm, the acquisition will expand Naver’s online retail reach, while allowing Poshmark to explore overseas markets.
Naver and Poshmark expect the transaction to deliver ‘substantial revenue and good benefits’, including a re-acceleration of annual revenue growth of over 20 per cent in the short term as ad monetisation improves, investments expand worldwide and live commerce gains traction.
The deal will combine Poshmark’s shopping platform with Naver’s technology, likely starting with live-streaming, a key driver of e-commerce in South Korea, followed by technologies such as image recognition and artificial intelligence, the two companies said in a statement.
“The online market changes so quickly, not doing anything can mean losing long-term value,” Naver’s Choi said, adding “We will do everything to carry out what we have promised investors two years, five years from now.”
