Etsy Inc. ETSY, +5.51% said Monday that it has signed a definitive agreement to acquire Brazilian marketplace Elo7 for $217 million in cash. Elo7 specializes in custom and made-to-order items, and has 1.9 million active buyers and 56,000 active sellers. Elo7 currently has about 8 million items for sale. “Elo7 is the ‘Etsy of Brazil,’ with a purpose and business model similar to our own,” said Josh Silverman, Etsy’s chief executive, in a statement. “Following our recent agreement to purchase Depop, we’re excited to bring another unique marketplace into the Etsy family.” The latest acquisition also gives Etsy a presence in Latin America where, Silverman said, the company does not have “a meaningful customer base.” Etsy quotes data showing e-commerce penetration in Latin America is less than 10%, and Brazil is the largest market. The Latin American e-commerce market is expected to reach $29 billion this year. Etsy’s other business is musical instrument marketplace Reverb. Elo7 is expected to be revenue-neutral to Etsy in the near-term. Etsy stock rose 1% in Monday premarket trading, and is up 3.9% for the year to date. The S&P 500 index SPX, +0.04% has gained 14% for 2021 so far.
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