Naver To Acquire Poshmark In $1.2 Bln Deal

(RTTNews) - Naver Corp., a South Korean internet provider, agreed to acquire online second-hand fashion marketplace Poshmark Inc. (POSH) for $17.90 per share in cash, representing an enterprise value of about $1.2 billion.

The deal price represents a premium of 15% to Poshmark's closing stock price as of October 3, 2022.

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.

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

Naver noted that it has secured voting and support agreements with certain stockholders of Poshmark, representing approximately 77% of the outstanding voting power of Poshmark common shares.

The transaction is expected to close by the first quarter of 2023. The transaction is expected to be funded with Naver's cash balances and other existing financing sources.