Shares of Farfetch (FTCH) rose after the company announced an agreement to acquire sneaker and streetwear marketplace Stadium Goods.

WHAT'S NEW: Farfetch announced before the market open that it agreed to acquire Stadium Goods, "the world's premier sneaker and streetwear marketplace", for an enterprise value of $250M. The consideration payable by Farfetch will be in the form of cash and Farfetch shares, with the exact amounts to be determined at completion following customary adjustments, the company said. The acquisition is subject to customary closing conditions and is expected to be completed in the first quarter of 2019. Commenting on the deal, Farfetch CEO and co-chairman Jose Neves said, "We are thrilled to welcome Stadium Goods to the Farfetch family. 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.

The Stadium Goods team has built an incredible company, with a host of talented people, dedicated and loyal customers and remarkable brand equity. I am confident that we can help Stadium Goods grow its international presence for sneakerheads around the world through our expertise in technology, logistics, and data. Farfetch will benefit from Stadium Goods' brand, access to supply and a team with a strong passion for and knowledge of luxury streetwear. We can't wait to get started with John, Jed and the rest of the Stadium Goods team."

PRICE ACTION: In late afternoon trading, Farfetch shares are up 4.2% to $23.49.