Online fashion retailer Zalando has announced plans to acquire rival About You for €1.1 billion, aiming to establish a leading pan-European e-commerce platform.
The proposed cash offer of €6.50 per share represents a 107% premium over About You’s three-month average stock price.
“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,” said Robert Gentz, Co-CEO and Co-founder of Zalando. “In B2C, we can offer customers and brands distinct and rich shopping experiences. In B2B, combining our complementary software capabilities, Tradebyte and SCAYLE, will create an even more advanced e-commerce operating system that enables brands and retailers to manage their multi-channel business across Europe and beyond.”
Founded in 2008, Zalando has grown into one of Europe’s largest online fashion platforms, serving over 50 million customers across multiple countries. About You, launched in 2014 as a subsidiary of the Otto Group, has also made significant strides in the e-commerce fashion sector serving over 12 million active customers. Otto brought About You onto the stock exchange three and a half years ago at an issue price of 23 euros per share.
This acquisition marks the next chapter for About You, a company that we at EU-Startups have previously covered as one of Europe’s exciting tech stocks to watch in 2022 and earlier this year as a unicorn achieving profitability amidst tough market conditions.
The acquisition is expected to enhance the combined entity’s presence in European markets, with a targeted adjusted earnings before interest and taxes (EBIT) margin of 10-13%
Major shareholders of About You, including the Otto Group, the Otto family, HEARTLAND, and the company’s management team, have entered into binding agreements to sell their shares to Zalando, which represent approximately 73% of the share capital. The management board and supervisory board of About You have expressed support for the transaction and intend to recommend that remaining shareholders accept the offer.
“The planned two-brand strategy would significantly increase the group’s presence in the pan-European markets,” said About You’s major shareholder, German retail group Otto.
The acquisition comes amid increasing competition from low-cost fast-fashion retailers like Shein, which have significantly impacted European online retailers. By combining resources, Zalando and About You aim to strengthen their market position and offer distinct shopping experiences to better serve customers and partners.
The deal is subject to regulatory approvals and is expected to be finalised 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, bringing together two founder-led teams.
A dual-brand strategy will be implemented, allowing each brand to retain its distinct identity while leveraging synergies in logistics, payment infrastructure and commercial collaboration.
“We are thrilled to team up with so many brilliant entrepreneurial colleagues and together move the success stories of Zalando and ABOUT YOU to the next level,” said Tarek Müller, the Co-founder and Co-CEO of ABOUT YOU. “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 optimized offer for clients in logistics, software and services.”
This purchase highlights Zalando’s work in expanding its footprint in the European fashion and lifestyle market, reportedly valued at €450 billion, leveraging synergies in logistics, payments, and commercial collaboration to drive growth and profitability.
The buyout was announced this morning through the Zalando corporate press release and a media conference.
