Naver has acquired Poshmark, Nasdaq-trading and California-based social e-commerce platform, for $1.6 billion in the biggest buyout by the South Korean internet name expanding its global sphere and consumer-to-consumer (C2C) e-commerce portfolio.

Naver announced Tuesday that it has entered into a definitive agreement with Poshmark to acquire all of the issued and outstanding shares of Poshmark for $17.90 in cash. Enterprise value is estimated at $1.2 billion.

Naver is spending $1.6 billion in total for the acquisition, which is to be completed by March 2023.

Naver shares lost 8.79 percent to close at 176,500 won ($123.69) on Tuesday.

The acquisition is to be made via Proton Parent, a special purpose company based in the U.S. Naver in a separate disclosure said Tuesday that it will acquire a full 100 percent stake in Proton Parent to facilitate the buyout of Poshmark.

Poshmark is an online platform that provides social network for trading new and secondhand fashion goods. Established in 2011, Poshmark is a leading C2C e-commerce site in North America with 80 million registered users. Its gross merchandise value last year reached $1.8 billion to generate revenue of $330 million. It joined the Nasdaq in January 2021.

The acquisition is the largest for the Korean household web portal name and the first under 40-year-old chief Choi Soo-yeon who took command of the internet giant as the youngest leader in March this year.

Naver aims to leverage Poshmark’s strong network of young users to strengthen its reach in online retail market, while allowing Poshmark to expand out to international markets.

Once acquisition is completed, Poshmark will operate as an independently-run subsidiary under Naver. Its brand and business identity will be kept the same.

By Lim Young-shin and Cho Jeehyun

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