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.
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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%.
