Naver, the South Korean search giant, announced it plans to acquire secondhand apparel marketplace Poshmark for $1.2 billion in cash.
The deal values publicly traded Poshmark’s shares at $17.90 a 15% premium over today’s closing price and the companies expect it to close by Q1 2023, subject to approval by Poshmark stockholders and the satisfaction of certain other customary closing conditions.
Poshmark will become a standalone subsidiary of Naver led by CEO Manish Chandra and Poshmark’s current management team and continue to operate under its existing brand, Naver says, and maintain its staff, user base, and headquarters in Redwood City, California.
Naver plans to combine the service’s growing social shopping platform, where users buy and sell used apparel, with its technological prowess and existing communities, like the online forum Naver Café.