eBay has agreed a $1.2 billion (£890 million) deal to buy second-hand fashion marketplace Depop from Etsy.
The all-cash deal comes five years after online marketplace Etsy bought Depop for $1.6bn (£1.18bn).
Depop, which was founded in the UK in 2011, will give eBay greater volume in one of its fastest-growing categories.
In the UK and Europe, eBay is seeking to compete with rising star Vinted. In response to Vinted, eBay had already scrapped selling fees for second-hand clothes; meanwhile Vinted announced a launch into the US just weeks ago.
However Depop is expected to retain its name, brand and platform.
Depop has three million active sellers, and seven million active buyers. According to Etsy, nearly 90% of the latter are under the age of 34.
eBay CEO Jamie Ianonne said the US marketplace giant is seeking to capture a younger demographic.
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“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category,” he said.
“We are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities.”
Peter Semple, CEO of Depop, said the transaction is “testament to the significant growth we have delivered”.
Kruti Patel Goyal, who served as CEO of Depop for three years and is now chief executive of Etsy, said Depop has become “one of the fastest-growing fashion resale marketplaces in the US” and said the deal is “a positive next step for all involved”.
She added: “I am confident that Depop is well-positioned for its next phase of growth as part of eBay.”
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