S.Korea’s Naver to acquire Poshmark in U.S. for $1.6 billion By Reuters

© Reuters. FILE PHOTO: A screen displays the company logo for Poshmark Inc. during the company’s IPO at the Nasdaq Market Site in Times Square in New York City, U.S., January 14, 2021. REUTERS/Brendan McDermid

By Joyce Lee

SEOUL (Reuters) -South Korean tech firm Naver Corp said on Tuesday it agreed to a $1.6 billion deal to buy Poshmark Inc, a U.S. secondhand fashion platform, as a strategic investment to enter the U.S. e-commerce market.

The $1.6 billion includes consideration for Poshmark’s cash holdings, and the enterprise value of Poshmark is about $1.2 billion, a Naver spokesperson said.

The deal will combine Poshmark’s shopping platform with Naver’s technology including image recognition and live streaming, a key driver of e-commerce in South Korea, to target an $80 billion market in online secondhand fashion commerce in the U.S., the companies said in a statement.