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Monday, July 22, 2019

Etsy acquired musical instrument reverb market for $ 275 million

Etsy acquired musical instrument reverb market for $ 275 million

Etsy has announced plans to acquire Reverb, a market for new and used musical instruments, in a cash settlement of approximately $ 275 million.

Located in New York, Etsy has made several acquisitions in its 15-year history, but in 2016, after the distribution of $ 32.5 million for the start of Blackbird, AI, Raindab is the first.

Founded in Chicago in 2012, Reverb is essentially an eBay for musical instruments, where anyone can buy and sell guitars, amplifiers, batteries, pedals, keyboards, spare parts and more.

With its famous sponsors including reverb founder Max Lewichin, former Twitter Operations Director Adam Bain and Lean Startup author Eric Rees, since his establishment, Reverb had raised nearly $ 50 million. Meanwhile, Etsy is riding a crest of a wave, the price of its shares doubled in the last year and reached a record high of $ 73 in March.

While Etsy is better known as a market for those wishing to sell their handmade items, the Riverbur represents an extension in a new vertical. However, there is a clear synergy, to the extent that both companies are connecting buyers with vendors, especially with the focus on unique or old products.

"As we have said, our mergers and acquisitions strategies get to work as opportunistic as our capital, looking for excellent business at the right price, and we believe that Riverbus is just" Director Rachel Glaser said. "Riverburts share our mission, almost a similar business model, a strong brand and a healthy growth in a big and fragmented market is dynamic."

Etsy said that it will continue to work as an independent brand and business when the agreement will be closed, which is expected to be at the end of this year. In a separate statement, the founder and CEO of Reverb David Kult told that in reality, Reverb was actually a part of the reason for the first time.

"Eighty made a path and given me the confidence of starting the Riverbank six years ago, looking at musicians' market needs," he said. "Reversion has always been an inspiration on Etsy, since its inception, we have been praised for their dedication to the companies and creative entrepreneurs for their unwavering support, their driven approach to values ​​and to maintain human commerce, their Not to mention praise, old things. "