Shares of eBay and Depop’s current owner, Etsy, popped in after-hours trading.

Ebay wants Depop to help bolster its popularity among younger shoppers, with the deal expected to complete later this year.

Online seller eBay wants a bigger share of the Gen Z market. The online seller has agreed to purchase secondhand fashion marketplace Depop from Etsy for about $1.2 billion in cash, the companies said ...