Seoul: Korean technology company Naver Corp said on Tuesday that it had agreed to a $1.6 billion deal to buy Mark Inc., a United States garment sell the platform company, as a strategic investment to enter the US e-commerce market.
A Naver spokesperson said $1.6 billion includes considerations of Poshmark’s cash holdings and that Poshmark’s enterprise value is about $1.2 billion.
Poshmark is the largest fashion consumer-to-consumer platform in North America, with 80 million registered users led by active Millenial and Gen Z users, Naver and Poshmark said on a conference call. proposal for this agreement.
The deal will combine Poshmark’s procurement platform with Naver’s technology including image recognition, artificial intelligence and live streaming, the main driver of e-commerce in South Korea, the companies said. in a statement.
According to Activate Consulting, the companies plan to target the $80 billion market in online fashion “re-commerce” in the US, which is expected to grow 20% annually to $130 billion by 2020. year 2025.
Poshmark shares rose 14% to $17.8 in after-hours trading on Monday. However, shares on Naver were down 5.2% as of 0120 GMT, compared with a 2.3% gain in the broader market.
Naver acquires North American online literature platform Wattpad for about $600 million last year.