Naver will buy U.S. fashion e-commerce platform Poshmark in a deal worth USD 1.6 billion, the South Korean tech company said Tuesday, marking its biggest acquisition ever.
The search engine operator will purchase all Poshmark shares at USD 17.90 each, a 15% premium over Monday’s closing price of USD 15.57. The deal will be executed through a special purpose company established by Naver and will be completed during the January-March period of next year.
“We’re drawing a big picture for community commerce, a new retail approach that only Naver can realize on the global market,” Naver CEO Choi Soo-yeon said.
Poshmark is a consumer-to-consumer fashion marketplace with 5.6 million registered sellers and 37 million users. The app takes a percentage cut of each transaction.
Sellers host virtual “closets” on Poshmark where they post pictures of the clothing on offer. The app is also home to influencers with more than 1 million followers, and this integration of social media and e-commerce has attracted young users.
Poshmark’s rivals include Japanese flea market platform Mercari.
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Naver also operates an online mall that hosts individual vendors and small businesses. The South Korean company sees growth in sales from creators, as well as in person-to-person secondhand resales.
Naver also launched the Smart Store platform, where individuals can easily open online shops, in Japan and Europe. Acquiring Poshmark will open the door to building an e-commerce platform in North America.
Poshmark, established in 2011, listed on Nasdaq on January 2021. But since its float, the stock has tumbled 85%.
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.