Etsy, Inc. has completed its acquisition of Reverb Holdings, Inc. for $275 million in cash, subject to certain adjustments with respect to cash, debt, working capital, transaction expenses, and the value of equity awards granted in connection with the transaction.
Josh Silverman, Chief Executive Officer of Etsy, commented, “We are excited to officially welcome Reverb’s employees and the entire Reverb community to Etsy. We see significant potential in the Reverb marketplace and look forward to supporting them as they enable more and more music lovers around the world to buy, sell, connect, and learn. It is our goal to unlock further value in what is already a strong and vibrant business with key competitive differentiation.”
As previously announced, Reverb will continue to operate as a standalone business. There are a number of similarities between Etsy and Reverb’s businesses, such as the focus on improving search and discovery, making selling and buying easier, and growing their global brands and communities. The two companies will share knowledge and best practices, and Etsy plans to leverage its marketplace expertise to help Reverb further scale and grow.
Etsy will provide an update on the impact of Reverb to its 2019 financial guidance in conjunction with the release of its third quarter 2019 earnings. In addition, Etsy will file Reverb’s historical financial statements on Form 8-K/A within the time period required by the U.S. Securities and Exchange Commission.
In Today’s Music Business… Time-Tested Practices Still Serve You Well