Zalando SE, the German online fashion retailer, has agreed to acquire rival About You Holding SE for approximately €1.2 billion ($1.3 billion) in a move to strengthen its dominance in Europe’s e-commerce market. Zalando announced it will offer €6.50 per share for About You, which represents a 67 percent premium to the closing price on Tuesday. The acquisition is expected to significantly enhance Zalando’s share of the €450 billion European fashion and lifestyle market.
The management and supervisory boards of About You have endorsed the transaction, with major shareholders, including the Otto family and Heartland A/S, also agreeing to the offer. Combined, these entities represent about 73 percent of the company’s total shares. Founded in 2014 as a subsidiary of the Otto Group, About You boasts over 12 million monthly users and provides access to more than 700,000 items from approximately 4,000 brands.
The company operates across key European markets and ships products to around 100 countries worldwide. Additionally, its digital business division, Scayle, will complement Zalando’s e-commerce system, Zeos. About You’s shares surged up to 67 percent in response to the takeover news, aligning with the offer price.
Zalando acquires rival for €1.2 billion
Despite the recent boost, the stock had been down nearly 5 percent over the past twelve months. Conversely, Zalando’s shares fell by as much as 9.2 percent in early trading, though they had seen a 46 percent increase over the previous year.
The founders of About You — Sebastian Betz, Tarek Mueller, and Hannes Wiese — will remain in their current roles. Both brands will continue to operate separately but will benefit from shared logistics, payment infrastructure, and commercial collaboration. Zalando anticipates the deal will generate approximately €100 million in annual synergies or cost savings in the long term.
Analysts have noted that while the transaction appears advantageous overall, there could be potential competition concerns in Germany. The combination of both retailers’ business-to-business arms, Zalando’s Zeos and About You’s Scayle, is seen as a strategic move to facilitate product launches across various marketplaces. Efficient logistics integration will be crucial to achieving the promised synergies, according to Bloomberg Intelligence analyst Tatiana Lisitsina.
Zalando reiterated its medium-term outlook, anticipating an adjusted earnings before interest margin of between 6 percent and 8 percent by 2028 for the combined entity.
