One day after the United States online garment resale platform Mark has been acquired by South Korean technology company Naver Corp. Poshmark chief executive officer (CEO) Manish Chandra has sent out an email detailing the outlines of the deal, the rationale behind it, and a roadmap for the company. company.
“I believe this step will give us more resources and the flexibility of a private company, enhancing our ability to serve sellers and shoppers with new technology and search capabilities. world-class search, accelerate our direct selling efforts, and leverage Naver’s substantial resources and expertise to expand our community as it expands globally,” Chandra wrote in email.
Poshmark was acquired by Naver Corp for $1.6 billion – including considering Poshmark’s cash holdings and Poshmark’s corporate value of approximately $1.2 billion. This is about $20 million less than its market cap of about $1.38 billion.
After trading closes, Poshmark will no longer trade on the public market, and Poshmark stock holders will receive $17.90 in cash per share, Chandra said. He also clarified that Poshmark will continue to operate independently, as an independent subsidiary of Naver, and that their current management team, brand, and mission will remain the same.
“Our ability to invest in the areas that will help our community thrive over the next decade and beyond will change,” he wrote.
Poshmark is a fashion-focused e-commerce platform for consumers, with 80 million registered users led by active Millenial and Gen Z users, Naver and Poshmark said in a press conference. conference call about this agreement.
According to Activate Consulting, the companies plan to target the $80 billion market in the “recommerce” online fashion sector in the US, which is expected to grow 20% annually to $130 billion by 2020. year 2025.
Last year, Poshmark announced the launch of its social commerce marketplace in India. The Nasdaq-listed company provides a marketplace for new and second-hand products for women, men, children, pets and families, among others.