Zalando says the deal will help it to build a pan-European e-commerce platform.
ADVERTISEMENTGermany’s online retailer Zalando said on Wednesday that it had agreed to buy rival fashion group About You for around €1.1bn.
Zalando said it would offer €6.50 for each About You share, a premium of 67% on Tuesday’s closing price.
It also represents a 107% premium on About You’s three-month average stock price.
About You’s management and major shareholders, representing 73% of share capital, have agreed to sell their stakes – according to Zalando’s press statement.
The transaction is expected to close in summer 2025, subject to regulatory approvals.
About You, which was founded in 2014, counts more than 12 million active customers and stocks roughly 4,000 brands
Wednesday’s statement noted that About You appeals to a “young fashion audience” and is therefore more “style-led” than Zalando – which tends to be more “brand-led”.
Zalando add that the “complementary strengths” of the two businesses would “seamlessly align to deliver a comprehensive and optimised offer for clients” across Europe.
Over the longer term, the process of combining operations is expected to generate about €100m a year in cost-savings.
Shares in Zalando were down more than 6% in daily trading at around 10h15 CET.
About You shares were up around 63%.
