Etsy will acquire the business for USD 217 million in cash, subject to certain adjustments for Elo7's working capital, transaction expenses, cash and indebtedness, and reduced by the value of certain equity awards of Etsy to be granted to Elo7 employees in connection with the transaction. Following the closing of the transaction, Elo7 will continue to be headquartered in Sāo Paulo, Brazil and operate as a standalone marketplace run by its existing leadership team.
Elo7 is expected to provide Etsy with a local brand in the Latin American market, where ecommerce penetration is <10%; and Brazil is the largest ecommerce market. The Latin American ecommerce market is projected to reach approximately USD 29 billion in 2021, with a 26% CAGR forecasted through 2024, according to data provided by Etsy.
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