European fashion and lifestyle e-commerce marketplace, Zalando has unveiled plans to acquire fashion retailer About You in a €1.2bn ($1.3bn) deal.
Zalando will initiate a voluntary public tender offer to buy up to 100% of About You's share capital.
The proposed cash offer, amounting to €6.50 per share, represents a significant 107% premium over About You’s three-month weighted average stock price.
Following the announcement, About You's shares concluded at €3.90 on Tuesday 10 December 2024, as reported by Reuters.
The integration of About You is poised to amplify Zalando's ecosystem strategy, first disclosed in March 2024.
The strategy is designed to forge an expansive pan-European fashion and lifestyle e-commerce network, incorporating both direct-to-consumer and business-to-business growth avenues to solidify relationships with both consumers and industry partners.
Zalando co-CEO and co-founder Robert Gentz said: “Redefining fashion and lifestyle shopping by creating the best possible experience for customers and partners has always driven both our teams. I’m excited about how together we’ll be able to cover a larger share of the fashion and lifestyle market.”
The co-founders and executive board members of About You have signalled their endorsement of the acquisition.
They have committed to advocating for shareholder approval of Zalando's forthcoming offer document and intend to maintain their executive roles following the transaction.
Key stakeholders Otto Group, Otto Family, HEARTLAND and About You Management have also agreed to transfer 73% of About You’s share capital to Zalando. The transfer will be carried out either through acceptance of the public offer or via distinct agreements.
The transaction is expected to close by summer 2025.
Post-acquisition, Zalando has confirmed its medium-term financial projections for the merged entity, forecasting a compound annual growth rate for gross merchandise value and revenue between 5% and 10% through 2028.
By 2028, the combined enterprise aims for an adjusted earnings before interest and taxation (EBIT) margin between 6% and 8%, indicating a marked increase in absolute profitability driven by enhanced scalability.
The merger will give rise to a dual-brand strategy in which each brand preserves its distinct identity while leveraging synergies in logistics, payment systems and commercial partnerships.
This collaborative model is anticipated to yield unique shopping experiences tailored to a diverse consumer base's tastes and preferences.
In May 2024, Zalando announced the restructuring of its management board to better execute its updated strategy.
