E-commerce company Etsy (NASDAQ:ETSY) has acquired "Elo7," a Brazilian online marketplace specializing in made-to-order products, for $217 million U.S. in a move designed to expand into Latin America.
The deal comes weeks after Etsy acquired Depop, a website for buying and selling second-hand clothing that is popular among Gen Z consumers.
Like Depop and Reverb, a music marketplace purchased by Etsy in 2019, Elo7 will continue to be run by its existing management team and as an independent marketplace once the deal closes in the third quarter of this year.
Both Etsy and Elo7’s websites connect buyers and sellers interested in homemade items that include accessories, toys and clothing. Founded in 2008, Elo7 has 56,000 active vendors selling to over 1.9 million buyers in Brazil.
Brazil has the largest e-commerce market in Latin America based on user numbers, according to JPMorgan (NYSE:JPM), which served as exclusive financial adviser to Etsy on the Elo7 all-cash purchase.
Shares of Etsy rose 7% after the Elo7 deal was announced, closing at $198.41 on June 28.
Tech Insider
