Etsy has completed its acquisition of resale fashion app business Depop, which has an office in Manchester, for more than $1.6bn.
The NASDAQ-listed company has paid £1.625bn for the London-headquartered firm which also has bases in New York, Los Angeles and Sydney and has about 400 employees.
The deal was first announced at the start of June and Depop will operate as a standalone marketplace run by its existing leadership team.
Founded in 2011, Depop's 2020 gross merchandise sales (GMS) and revenue were approximately $650m and $70m, respectively, each increasing over 100% year-over-year.
Depop's GMS grew at a compounded annual growth rate of nearly 80% from 2017-2020.
Approximately 90% of Depop's active users are under the age of 26 while the app is the 10th most visited shopping site among Gen Z consumers in the US.
Etsy chief executive Josh Silverman said: "We believe Depop to be the resale home for Gen Z consumers with a unique offering and highly-engaged user base.
"With the closing of this incredibly exciting transaction, Etsy's 'house of brands' portfolio now includes four individually distinct, and very special, ecommerce brands – Etsy, Depop, Reverb and Elo7 – with parallel growth strategies, all sharing similar missions, visions, and values.
"We are excited to welcome the entire Depop community into the Etsy family and look forward to applying Etsy's value creation roadmap to help them further drive growth."
Starting first in the UK and moving into the US and Australia, Depop now has a community of approximately 30 million registered users across nearly 150 countries.
Speaking in June Depop's chief executive Maria Raga said: "We're on an incredible journey building Depop into a place where the next generation comes to explore unique fashion and be part of a community that's changing the way we shop.
"Our community is made up of people who are creating a new fashion system by establishing new trends and making new from old. They come to Depop for the clothes, but stay for the culture.
"We'll now take an exciting leap forward as part of the Etsy family, benefiting from Josh's and his team's expertise, and the resources of a much larger company whose values are so aligned with ours here at Depop."
Goldman Sachs served as exclusive financial advisor to Etsy, Deloitte as due diligence advisors and Fenwick & West LLP and Allen & Overy LLP served as Etsy's legal advisors.
Credit Suisse served as exclusive financial advisor to Depop and Weil, Gotshal & Manges LLP served as its legal advisor.
