South Korea’s largest internet company Naver Corp. will be acquiring U.S. e-retailer Poshmark (NASDAQ: POSH) for approximately USD1.2 billion, the companies revealed Monday. Poshmark shares rose up to 14% during extended trading.
The acquisition was approved by both Naver’s and Poshmark’s board of directors and is expected to close by the first quarter of 2023. The transaction will be funded by Naver’s cash balances as well as other existing financing options.
“The combination will create the strongest platform for powering communities and re-fashioning commerce,” said Choi Soo-Yeon, chief executive officer of Naver. “Poshmark is the definitive brand for fashion in the United States that provides a social network for buying and selling apparel. Naver’s leading technology in search, AI recommendation, and e-commerce tools will help power the next phase of Poshmark’s global growth.”
Naver is set to pay USD17.90 per share in the all-cash agreement. Shares of the internet giant slid over 7% in Asia’s trading session.
Both companies expect the deal to bring in “significant revenue and cost synergies,” including the boost of revenue growth of over 20% in the near future. The forecast comes as ads improve monetization, investments expand overseas, and live commerce receives more attention.