Benzinga | Jun 2, 2021 06:37AM EDT

Etsy to Acquire Global Fashion Marketplace Depop For $1.6B

* 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.