• Etsy Inc (NASDAQ: ETSY) inked an agreement to acquire London’s second-hand fashion marketplace Depop for $1.625 billion.

  • Depop will continue to be headquartered in London, England, and operate as a standalone marketplace under its existing leadership team.

  • Depop clocked 2020 gross merchandise sales (GMS) of $650 million and revenue of $70 million, each increasing over 100% year-over-year.

  • Following the close of this transaction, Etsy will operate three highly differentiated, non-commoditized e-commerce brands: Etsy, Reverb, and Depop.

  • The transaction is currently expected to close during the third quarter of 2021.

  • Etsy said it has sufficient available liquidity to fund the acquisition.

  • Etsy held $1.7 billion in cash and equivalents as of Mar. 31, 2021, and an undrawn $200 million revolving credit facility.

  • Price action: ETSY shares closed lower by 0.77% at $163.46 on Tuesday.

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