Online seller eBay has agreed to pay $1.2bn (£890m) to purchase second-hand fashion marketplace Depop from Etsy, the companies have announced.
The all-cash deal is expected to be completed by the middle of this year – five years after Etsy, an online marketplace, bought Depop for $1.6bn (£1.18bn).
The acquisition comes as the popularity of used clothing has grown in recent years, with consumers seeking a sustainable, more affordable alternative to traditional retailers.
Depop, which was founded in the UK in 2011, is expected to retain its name, brand and platform, the companies said.
eBay has agreed to purchase Depop for $1.2bn. File pic: Reuters
At the end of last year, Depop’s marketplace had three million active sellers and seven million active buyers, nearly 90% of which were under the age of 34.
In a statement, eBay‘s CEO Jamie Ianonne said the purchase presents an opportunity to capture a younger demographic.
Mr Ianonne said: “Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category.
“We are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities.”
Peter Semple, CEO of Depop, said the transaction is “testament to the significant growth we have delivered”.
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Etsy chief executive Kruti Patel Goyal called the deal is “a positive next step for all involved” and added she was “confident Depop is well-positioned for its next phase of growth as part of eBay”.
Following the announcement of the acquisition, eBay’s shares rose more than 7%, while Etsy’s share soared close to 15%.
