NAVER ENTERS AGREEMENT TO ACQUIRE POSHMARK

KUALA LUMPUR, Oct 4 (Bernama) -- Naver Corp (Naver) and Poshmark Inc (Poshmark), announced that they have entered into a definitive agreement under which Naver will acquire all of the issued and outstanding shares of Poshmark for US$17.90 in cash, representing an enterprise value of approximately US$1.2 billion. (US$1 = RM4.646)

Naver is Korea’s largest internet company, while Poshmark is a leading social e-commerce marketplace for new and secondhand style.

This represents a premium of 15 per cent to Poshmark’s closing stock price as of Oct 3, 2022, a 34 per cent premium to the 30-day volume weighted average price, and a 48 per cent premium to the 90-day volume weighted average price of Poshmark’s shares.

“The combination will create the strongest platform for powering communities and re-fashioning commerce,” said Chief Executive Officer (CEO) of Naver, Choi Soo-Yeon in a statement.

“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.”

The transaction will create a global player in online fashion re-commerce by combining Poshmark’s unique discovery-based social shopping platform and deeply engaged community with Naver’s technological prowess in uplevelling the e-commerce experience. 

Poshmark will also leverage Naver’s proven expertise and track record in Asia and its significant expertise from backing and investing in other fashion and consumer-to-consumer (C2C) e-commerce platforms globally.

The combination accelerates Naver’s strategy to build a global e-commerce community portfolio to capture the growth in large markets around the world, including Poshmark’s home market of North America.

Upon completion of the transaction, Poshmark will become a standalone U.S. subsidiary of Naver and will continue to be led by CEO Manish Chandra and Poshmark’s current management team.

Poshmark will continue to operate under its existing brand, as well as maintain its employee base, Poshmark community, and headquarters in Redwood City, California.

-- BERNAMA