Etsy announced that it is acquiring Reverb Holdings, a marketplace for new, used and vintage music gear.
The deal is for $275 million in cash, subject to certain adjustments. Once the transaction closes, Reverb will continue to operate as a standalone business.
“Vibrant two-sided marketplaces are lightning in a bottle — there are only a handful of them operating at scale — and Reverb is one,” said Etsy CEO Josh Silverman in a press release. “This transaction is a great strategic fit that firmly aligns with our mission of keeping commerce human. Reverb is the ‘Etsy’ of musical instruments, with significant competitive advantages, and we see tremendous value and untapped potential in the business.”
“There are a number of similarities between the levers of growth for Etsy and Reverb,” he added, “such as improving search and discovery, making selling and buying easier, and building a global brand and user community. We have been successfully implementing these types of initiatives at Etsy for two years now and are confident that we can similarly impact Reverb’s business. We look forward to welcoming Reverb’s talented employees to the Etsy family as we work to better serve our buyers and sellers and drive value for our stakeholders.”
Founded in Chicago in 2013, Reverb has been focused on making musical instruments affordable. The marketplace’s sellers are individuals, brick and mortar retailers, dealers of all sizes, and high-profile artists.
“In a short amount of time, we’ve built a community that musicians from all walks of life turn to for income to support their families, inspiration to fuel their passions, instruments to create new music, and so much more,” said Reverb Founder and CEO David Kalt. “We’re excited to continue growing our marketplace, team and community as part of Etsy. We’ve always found inspiration in Etsy. In fact, the company gave me the confidence to launch Reverb when I saw the need for a musician’s marketplace in 2013. We’re excited to align ourselves with a marketplace that has been supporting artists, makers and creative entrepreneurs for nearly 15 years. Together, we’ll continue to create a destination online where the music industry connects over the perfect piece of gear.”
Kalt will continue to serve as CEO until Etsy identifies a new leader of the business.