Zalando has announced its acquisition of the German fashion online platform About You in a deal valued at €1bn (£906m).
- The offer of €6.50 (£5.35) per share reflects a 12% premium over About You’s current stock price.
- Major shareholders including Otto Group and management, holding 73% of shares, agreed to sell to Zalando.
- About You’s board plans to advise shareholders to accept the acquisition offer.
- Zalando’s leaders see enhanced market potential in combining their strengths with About You.
Zalando, a leader in the European ecommerce space, is moving forward rapidly with its strategic initiative to expand its reach, as evidenced by its recent announcement to purchase the German online fashion retailer, About You. The proposed buyout, valued at €1bn (£906m), is structured to offer €6.50 (£5.35) per share, which is notably 12% above the current market valuation of About You’s shares.
The agreement has garnered the approval of major stakeholders within About You, including the Otto Group, the Otto Family, and Heartland, as well as the existing management team. These shareholders possess a majority control of 73% of the company’s share capital, marking a significant move towards a successful transaction. In a related development, the management and supervisory board at About You have expressed their intention to recommend that the remaining shareholders accept Zalando’s lucrative offer.
In a statement reflecting the strategic aspirations of this union, Robert Gentz, co-founder and co-CEO of Zalando, conveyed his enthusiasm by highlighting the capacity of the combined companies to redefine consumer experiences in fashion and lifestyle retailing. His counterpart at About You, Tarek Müller, shared a similar sentiment, acknowledging the potential for the two businesses to operate both distinct and together, thus leveraging complementary strengths in B2B operations such as logistics and software solutions to deliver an enhanced service portfolio to their clientele.
This acquisition underscores Zalando’s commitment to bolstering its pan-European growth by assimilating About You’s innovative approach to online fashion retailing. Both companies anticipate that the integration will facilitate the expansion of their combined market footprint, leveraging shared resources and capabilities to capture a larger segment of the fashion market through a unified strategy.
The Zalando-About You acquisition is poised to create a formidable player in the European ecommerce market, promising innovative consumer experiences.
