Naver agrees to amass style market Poshmark for $1.2B • TechCrunch

Naver, the South Korean search big, right this moment introduced it plans to amass secondhand attire market Poshmark for $1.2 billion in money. The deal values publicly-traded Poshmark’s shares at $17.90 — a 15% premium over the closing value right this moment — and the businesses count on it to shut by Q3 2023, topic to approval by Poshmark stockholders and “the satisfaction of sure different customary closing circumstances.”

If the transaction goes by way of, Poshmark will develop into a standalone subsidiary of Naver led by CEO Manish Chandra and Poshmark’s present administration workforce. It’ll additionally proceed to function underneath its current model and preserve its workers, consumer base, and headquarters in Redwood Metropolis, California.

In a press launch, Naver and Poshmark lay out a number of arguments for why the deal is sensible for each events. By buying Poshmark, Naver hopes to capitalize on the service’s rising social buying platform, the place customers purchase and promote attire on-line, with its “technological prowess.” As for Poshmark, it putatively stands to learn from Naver’s good lens picture recognition and search applied sciences, which Naver says will permit the buying platform to supply new search, advice and buying experiences that allow customers discover attire by looking colours, designs and supplies and figuring out the place to search out merchandise by scanning garments utilizing the digicam on their telephones.

Naver additionally touts its sturdy ad-serving and funds infrastructure, averring that Poshmark will be capable to leverage it to raised analyze gross sales statistics and serve worldwide prospects. The long-term plan is to — with Naver’s backing — develop Poshmark’s enterprise into further developed markets in Asia and elsewhere the place Naver has main enterprise holdings, partly by integrating a few of Naver’s reside buying providers with Poshmark’s platform.

Naver optimistically predicts the acquisition may develop Poshmark’s annual income “past” 20% and save the ecommerce firm $30 million in annual run charge inside two years.

“The chance to hitch forces with Naver — one of many world’s main and most modern and profitable web corporations — is a testomony to the power of our model, working mannequin, and what we’ve constructed during the last decade with our gifted workforce and superb group,” Poshmark CEO Manish Chandra stated in a press launch. “Our trade continues to evolve at a fast tempo, and we’re excited to proceed to steer the way forward for buying by offering our group with an unparalleled expertise that’s easy, social, enjoyable and sustainable. It is a extremely compelling alternative for our workers, who will profit from being half of a bigger, international group with shared values and complementary strengths. This transaction additionally delivers important and fast worth to our shareholders. Long run, as a part of Naver, we’ll profit from their monetary sources, important expertise capabilities, and main presence throughout Asia to broaden our platform, elevate our product and consumer experiences, and enter new and enormous markets. I stay up for partnering with Naver as we take our firm into its subsequent section of progress.”