South Korean tech firm Naver Corp said on Tuesday it agreed to a $1.6 billion deal to buy fashion resale platform Poshmark Inc. as a strategic investment to enter the US e-commerce market.

The $1.6 billion includes consideration for Poshmark’s cash holdings, and the enterprise value of Poshmark is about $1.2 billion, a Naver spokesperson said.

The deal will combine Poshmark’s shopping platform with Naver’s technology including image recognition and live streaming, a key driver of e-commerce in South Korea, to target an $80 billion market in online secondhand fashion commerce in the U.S., the companies said in a statement.

By Joyce Lee; editor: Leslie Adler and Christian Schmollinger

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