In a significant move to strengthen its position in the European fashion and lifestyle e-commerce market, Berlin-based online retailer Zalando has announced plans to acquire its rival, Hamburg-based About You, for approximately €1.1 billion ($1.3 billion).
The Acquisition Details
Zalando will offer €6.50 per share for About You, representing a 67% premium over Tuesday's closing price and a 107% premium over About You's three-month average stock price. This transaction has garnered support from major shareholders of About You, including the Otto Group, the Otto family, HEARTLAND, and the company’s management team, who collectively hold around 73% of the share capital. The management board and supervisory board of About You have also expressed their support for the deal and intend to recommend that remaining shareholders accept the offer.
Strategic Rationale
The acquisition is part of Zalando's broader strategy to establish a leading pan-European e-commerce platform. By combining the strengths of both companies, Zalando aims to enhance its presence in European markets and offer a more comprehensive and optimized service to customers and partners. Zalando's Co-CEO and Co-founder, Robert Gentz, emphasized that the deal will allow the combined entity to cover a larger share of the fashion and lifestyle market, providing distinct and rich shopping experiences for customers and brands alike.
Complementary Strengths
About You, founded in 2014, is known for its appeal to a young, style-conscious demographic, with over 12 million active customers and a network of more than 27,000 content creators. The company's focus on personalization, influencer marketing, and mobile shopping aligns well with Zalando's more brand-led approach. The dual-brand strategy will allow each brand to maintain its unique identity while leveraging shared logistics, payment infrastructure, and commercial collaboration.
Technological Synergies
The acquisition will integrate About You's SCAYLE software unit with Zalando's Tradebyte and ZEOS e-commerce operating systems. This integration will create a more advanced e-commerce platform, enabling brands and retailers to efficiently manage their multi-channel business across Europe and beyond. The combined technological capability is expected to enhance the operational efficiency and market reach of both companies.
Market Impact
The deal comes at a time when European online retailers are facing increasing competition from low-cost fast-fashion retailers like Shein. By combining resources, Zalando and About You aim to strengthen their market position and offer more competitive and sustainable shopping experiences. The combined entity is expected to have a targeted adjusted earnings before interest and taxes (EBIT) margin of 10-13%.
Regulatory Approval and Timeline
The transaction is subject to regulatory approvals and is expected to be finalized by the summer of 2025. Upon completion, About You’s management board members—Sebastian Betz, Tarek Müller, and Hannes Wiese—will continue in their current roles within the combined group.
Sustainability and Future Outlook
Both Zalando and About You have a strong commitment to sustainability and inclusivity in the fashion industry. The combined entity plans to intensify joint efforts to promote responsible practices, such as through initiatives aimed at sustainability and social responsibility. This larger scale and higher relevance for customers and brands are expected to drive positive change for a more sustainable and inclusive future of the fashion and lifestyle industry.
In summary, the acquisition of About You by Zalando marks a significant step in the consolidation of the European e-commerce market, promising enhanced customer experiences, improved operational efficiencies, and a stronger market presence for both brands.
The Acquisition Details
Zalando will offer €6.50 per share for About You, representing a 67% premium over Tuesday's closing price and a 107% premium over About You's three-month average stock price. This transaction has garnered support from major shareholders of About You, including the Otto Group, the Otto family, HEARTLAND, and the company’s management team, who collectively hold around 73% of the share capital. The management board and supervisory board of About You have also expressed their support for the deal and intend to recommend that remaining shareholders accept the offer.
Strategic Rationale
The acquisition is part of Zalando's broader strategy to establish a leading pan-European e-commerce platform. By combining the strengths of both companies, Zalando aims to enhance its presence in European markets and offer a more comprehensive and optimized service to customers and partners. Zalando's Co-CEO and Co-founder, Robert Gentz, emphasized that the deal will allow the combined entity to cover a larger share of the fashion and lifestyle market, providing distinct and rich shopping experiences for customers and brands alike.
Complementary Strengths
About You, founded in 2014, is known for its appeal to a young, style-conscious demographic, with over 12 million active customers and a network of more than 27,000 content creators. The company's focus on personalization, influencer marketing, and mobile shopping aligns well with Zalando's more brand-led approach. The dual-brand strategy will allow each brand to maintain its unique identity while leveraging shared logistics, payment infrastructure, and commercial collaboration.
Technological Synergies
The acquisition will integrate About You's SCAYLE software unit with Zalando's Tradebyte and ZEOS e-commerce operating systems. This integration will create a more advanced e-commerce platform, enabling brands and retailers to efficiently manage their multi-channel business across Europe and beyond. The combined technological capability is expected to enhance the operational efficiency and market reach of both companies.
Market Impact
The deal comes at a time when European online retailers are facing increasing competition from low-cost fast-fashion retailers like Shein. By combining resources, Zalando and About You aim to strengthen their market position and offer more competitive and sustainable shopping experiences. The combined entity is expected to have a targeted adjusted earnings before interest and taxes (EBIT) margin of 10-13%.
Regulatory Approval and Timeline
The transaction is subject to regulatory approvals and is expected to be finalized by the summer of 2025. Upon completion, About You’s management board members—Sebastian Betz, Tarek Müller, and Hannes Wiese—will continue in their current roles within the combined group.
Sustainability and Future Outlook
Both Zalando and About You have a strong commitment to sustainability and inclusivity in the fashion industry. The combined entity plans to intensify joint efforts to promote responsible practices, such as through initiatives aimed at sustainability and social responsibility. This larger scale and higher relevance for customers and brands are expected to drive positive change for a more sustainable and inclusive future of the fashion and lifestyle industry.
In summary, the acquisition of About You by Zalando marks a significant step in the consolidation of the European e-commerce market, promising enhanced customer experiences, improved operational efficiencies, and a stronger market presence for both brands.