A good payoff, Etsy sells Depop to eBay for approximately $1.4 billion

Etsy, Inc. (ETSY) announced it has completed the sale of Depop, a fashion resale marketplace, to eBay Inc. (Nasdaq: EBAY) for approximately $1.4 billion in cash.

The total consideration reflects a base purchase price of $1.2 billion plus $200 million in net purchase price adjustments and interest. Etsy noted that net cash proceeds remain subject to certain post-closing adjustments. The transaction closed following the receipt of required regulatory approvals.

Etsy said it plans to use the proceeds for general corporate purposes, including accelerating its share repurchase program, consistent with the capital allocation strategy outlined in its April 29 Shareholder Letter.

Etsy Chief Executive Officer Kruti Patel Goyal said in a statement: “This transaction allows us to move forward with a clear focus on building the best marketplace for Etsy’s buyers and sellers, and is a strong outcome for our shareholders.”