Etsy to acquire Elo7 for $217 million
Online marketplace Etsy announced on Monday that it has signed a definitive agreement to acquire Latin America’s Elo7, a privately held marketplace for unique, handmade items, commonly referred to as the “Etsy of Brazil”.
With 1.9 million active buyers, 56,000 active sellers and some 8 million items for sale, Elo7 is one of the ten biggest e-commerce sites in the region and will give Etsy a significant boost in the market.
Etsy will acquire the business for US$217 million in cash, subject to certain terms. The transaction is currently expected to close during the third quarter of 2021, subject to satisfaction of customary closing conditions.
The announcement follows plans to acquire secondhand fashion specialist Depop, revealed earlier this month. The $1.625-billion deal is expected to significantly grow Etsy's gross merchandise sales in the apparel sector, which were around $1 billion in 2020.
"Elo7 is the 'Etsy of Brazil,' with a purpose and business model similar to our own. Following our recent agreement to purchase Depop, we're excited to bring another unique marketplace into the Etsy family,” Josh Silverman, Etsy, Inc. CEO, said.
“This transaction will establish a foothold for us in Latin America, an underpenetrated e-commerce region where Etsy currently does not have a meaningful customer base. We look forward to welcoming Elo7's talented leadership team and employees to the Etsy family.”
Carlos Curioni, Elo7's CEO added: "Etsy has always been an inspiration and a reference for us, and we're excited to continue our growth journey as part of Etsy - a company whose mission and culture so closely match our own. We're looking forward to leveraging Etsy's product and marketing expertise to help the Elo7 marketplace, community and team achieve our full potential in Brazil.”
Following the closing of the transaction, Elo7 will continue to be headquartered in Sāo Paulo, Brazil and operate as a standalone marketplace run by its existing leadership team.
Etsy, Inc. will now operate four highly differentiated, non-commoditized e-commerce brands: Etsy, Reverb, Depop and Elo7. The marketplaces will operate independently, while benefiting from shared expertise in product, marketing, technology, and customer support.
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