South Korean tech company Naver Corp has announced the completion of its acquisition of social commerce marketplace Poshmark.
As initially announced, Naver signed an agreement with the resale site to acquire all of its shares, representing an enterprise value of approximately 1.2 billion dollars.
In a release, Naver said that the combination “will create a global player in online fashion re-commerce”, combining Poshmark’s discovery-based platform with Naver’s experience in upleveling e-commerce.
The US brand contributes to Naver’s strategy of building a global e-commerce community portfolio and unlocking growth in untapped markets.
Naver added that the two companies expect to increase purchase conversion rates, deepen user engagement, create industry leadership in livestreaming commerce and merge relationship and discovery-based experiences within re-commerce.
As part of the transaction, Poshmark common stock has ceased trading and been delisted from the NASDAQ.
The firm will continue to operate under its existing brand, while maintaining its base and headquarters in California.
Speaking on the move, Sooyeon Choi, CEO of Naver, said: “I'm confident Naver's leading technology in search, AI recommendation, and e-commerce tools will enhance the user experience for the Poshmark community and create additional value for all our stakeholders.
“Naver and Poshmark will immediately be well-positioned to compete globally in the future and benefit from C2C as a major revenue source."
The acquisition has not come without scrutiny, however.
Following the duo’s initial announcement, two law firms stepped up to investigate the decision, citing concerns over whether Naver and Poshmark had acted in the best interests of shareholders.
While Weiss Law said it would be evaluating the compensation of the proposed sale price, Ademi alleged Poshmark’s financial outlook and prospects appeared to be excellent, possibly meaning the agreed deal may not suffice.
The company went on to say: “The transaction agreement unreasonably limits competing bids for Poshmark by imposing a significant penalty if Poshmark accepts a superior bid. Poshmark insiders will receive substantial benefits as part of change of control arrangements.”