The companies signed a definitive agreement, under which, Zalando will launch a voluntary public tender offer to acquire up to 100% of the share capital of About You.
The cash offer corresponds to €6.50 per share, a 107% premium to About You’s three-month average stock price. About You’s shares closed at €3.90 on Tuesday (10 December), according to Reuters.
Go deeper with GlobalData
The integration of About You’s operations is anticipated to augment Zalando’s ecosystem strategy, unveiled in March 2024, aimed at establishing a comprehensive pan-European fashion and lifestyle ecommerce ecosystem.
This strategy encompasses both B2C and B2B growth vectors to fortify connections with customers and 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 management board members of About You, Sebastian Betz, Tarek Müller, and Hannes Wiese, have pledged their support for the acquisition, indicating their intention to recommend shareholders’ acceptance of the offer upon reviewing Zalando’s forthcoming offer document. They will continue with their roles post-transaction.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataMajor shareholders including Otto Group, Otto Family, HEARTLAND, and About You Management have committed to selling approximately 73% of About You’s share capital to Zalando either by accepting the public offer or through separate agreements.
The transaction’s completion is anticipated for the summer of 2025, pending regulatory approvals.
Zalando has reaffirmed its medium-term financial outlook for the newly combined entity, projecting a compound annual growth rate for gross merchandise value (GMV) and revenue between 5% and 10% through 2028.
The merged entity anticipates an adjusted EBIT margin between 6% and 8% by 2028, signalling a substantial upsurge in absolute profit due to increased scale.
The dual-brand strategy that will emerge from this merger will see each brand maintaining its unique identity while capitalising on shared logistics, payment infrastructure, and commercial collaboration. This approach is expected to deliver distinct shopping experiences that resonate with diverse customer preferences.
About You’s appeal to a younger, style-conscious demographic is bolstered by its network of over 27,000 content creators. Offering access to an extensive range of styles from various brands and exclusive collections, About You serves more than 12m active customers.
About You’s SCAYLE software unit is said to complement Zalando’s ecommerce operating system, ZEOS. Together, they will enable brands and retailers to efficiently oversee their multi-channel operations across Europe via an integrated platform, combining logistics infrastructure, software, and services.
Zalando’s Tradebyte software division is already assisting brands and retailers in reaching various online marketplaces. With the addition of SCAYLE, Zalando hopes to expand its offerings by providing a tailored solution to optimise brands’ and retailers’ own webshops and apps.
About You co-founder and co-CEO Tarek Müller said: “This transaction creates something truly unique, with two distinct and independent B2C businesses serving the specific needs of their customers. At the same time, the complementary strengths of the B2B businesses will seamlessly align to deliver a comprehensive and optimised offer for clients in logistics, software and services.”
In October, Zalando launched ‘Zalando partner’, a unified grouping of partner-facing services and offerings on its platform, creating a more cohesive and consistent experience across partner touchpoints.
