Online luxury fashion marketplace Farfetch Ltd. said Dec. 12 it would buy New York-based sneaker and streetwear marketplace Stadium Goods for $250 million.
Farfetch, which went public in September 2018, will fund the transaction with cash and shares.
Stadium Goods will continue to operate as a standalone brand on the Farfetch platform after the acquisition. It will be led by its existing management and the company's inventory will be available on Farfetch marketplace.
"By leveraging Farfetch's best-in-class cross-border logistics and technology, as well as their luxury prowess, scale and customer base, we will be in a prime position to capitalize on the massive international demand for sneakers and streetwear," said Stadium Goods co-founder and co-CEO John McPheters.
Stadium Goods, which was founded in 2015 and specializes in new and second-hand products, has had a presence on Farfetch since April 2018.
"Having already collaborated with its exceptional team via the Farfetch marketplace, it is clear that there is a great opportunity for our two companies to leverage each other's strengths to go after a larger share of an exciting and fast-growing segment of luxury fashion," said José Neves, Farfetch founder, co-chairman and CEO.
The deal is subject to customary closing conditions. London-based Farfetch expects to complete the transaction in the first quarter of 2019.
Goldman Sachs acted as financial adviser to Farfetch and Fenwick & West acted as legal adviser.