Korean firm Naver Corp. has signed an agreement with Poshmark, Inc., an e-commerce marketplace for new and secondhand style, to acquire all shares of Poshmark for 17.90 dollars in cash, representing an enterprise value of approximately 1.2 billion dollars.

The company said in a statement that the transaction 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.

Commenting on the development, Choi Soo-Yeon, chief executive officer of Naver said: “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.”

Naver to take over Poshmark

“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,” Soon-Yeon added.

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 the company’s current management team.

“This is a highly compelling opportunity for our employees, who will benefit from being part of a larger, global organisation 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,” added Chandra.

The company added that the transaction, which was unanimously approved by both Naver’s and Poshmark’s boards of directors, is expected to close by the first quarter of 2023.