Benzinga | Jun 28, 2021 09:25AM EDT

Etsy Expands In Latin America By Acquiring Brazil's Handmade Item Ecommerce Site For $217M Cash

* Etsy Inc (NASDAQ:ETSY) inked an agreement to acquire the Brazil e-commerce site for unique, handmade items, Elo7, for $217 million in cash.

* Elo7 will continue to be headquartered in So Paulo, Brazil, and operate as a standalone marketplace under its existing leadership team.

* This transaction will establish a foothold for Etsy in Latin America, an underpenetrated e-commerce region.

* In the near term, Elo7'sElo7's current run rate for GMS and revenue is likely to be neutral to Etsy's top-line results and modestly dilutive to adjusted EBITDA margin.

* The transaction is likely to close during Q3 of 2021.

* Etsy also recently agreed to acquire London's second-hand fashion marketplace Depop for $1.625 billion.

* 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 traded higher by 1.70% at $187.95 in the premarket session on the last check Monday.