Secondhand fashion app Depop is a new target of Etsy in a $1.62 billion acquisition deal, according to CNBC. The mainly cash deal transaction is expected to close by the third quarter of this year.
Depop has become famous among young clientele due to its social media presence and messaging that emphasizes ethical and eco-conscious shopping.
Etsy seeks to capitalize on Depop’s 30 million users in about 150 countries to expand offerings.
The deal will occur upon adjustments in the Target’s working capital, debt, transaction expenses, and particular unvested and deferred equity.
Upon the transaction closure, Depop will remain based in London as a standalone entity led by the current management
Depop is the biggest acquisition deal for Etsy.
Etsy stock is currently declining. ETSY: NASDAQ is down 1.22%
