Etsy to Acquire Global Fashion Marketplace Depop For $1.6B - Etsy (NASDAQ:ETSY)

Etsy Inc 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.