South Korean Internet giant Naver agreed to acquire Poshmark, the U.S.-based online resale platform, for roughly $1.2 billion. Naver is paying $17.90 per share in the all-cash deal. Poshmark closed Monday at $15.57.

The offer represents a premium of 15 percent to Poshmark’s closing stock price as of October 3, 2022, a 34 percent premium to the 30-day volume weighted average price and a 48 percent premium to the 90-day volume weighted average price of Poshmark’s shares.

Poshmark went public in January 2021 at $42 a share.

Naver operates a search engine, e-commerce platform and other services in South Korea. Poshmark is an online retail site that lets consumers shop from other users’ closets.

The companies said the deal would deepen Naver’s reach in online retail while allowing Poshmark to enter international markets.

The combination is expected to generate “significant revenue and cost synergies,” including reaccelerating annual revenue growth beyond 20 percent in the near term, as ads improve monetization, investments grow overseas and live commerce is adopted.

Choi Soo-Yeon, Naver’s CEO, said, “The combination will create the strongest platform for powering communities and re-fashioning commerce. 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.

“Poshmark is a natural fit for our business. Our two companies share a common set of values and vision around content, community and empowerment. Bringing Naver and Poshmark together will immediately put us at the forefront of creating a new, socially responsible and sustainable shopping experience designed around sellers of all sizes and interests—from individual and influencer sellers to professional sellers, brands and specialty boutiques—and a large, loyal and highly engaged social community. We are excited to work closely with Manish and his talented team to create lasting value for all our stakeholders,” continued Soo-Yeon.

Manish Chandra, founder and CEO of Poshmark, said, “The opportunity to join forces with Naver, one of the world’s leading and most innovative and successful internet companies, is a testament to the strength of our brand, operating model and what we’ve built over the last decade with our talented team and amazing community. Our industry continues to evolve at a rapid pace, and we are excited to continue to lead the future of shopping by providing our community with an unparalleled experience that is simple, social, fun and sustainable.

“This is a highly compelling opportunity for our employees, who will benefit from being part of a larger, global organization with shared values and complementary strengths. This transaction also delivers significant and immediate value to our shareholders. Longer term, as part of Naver, we will benefit from their financial resources, significant technology capabilities, and leading presence across Asia to expand our platform, elevate our product and user experiences, and enter new and large markets. I look forward to partnering with Naver as we take our company into its next phase of growth,” concluded Chandra.

Photo courtesy Poshmark