On Wednesday, Zalando, based in Berlin, announced its intention to acquire ABOUT YOU, a Hamburg-based e-commerce platform specializing in fashion and lifestyle products, via a public tender offer worth €1.1 billion. This acquisition aims to purchase up to 100% of ABOUT YOU’s shares at €6.50 each, which represents a 12% premium over the analysts’ average target price. ABOUT YOU has a strong user base, with over 45 million monthly active users benefiting from its personalized shopping experiences. The commitment of ABOUT YOU’s founders and management to remain in their current roles signals confidence in the deal, expected to finalize in summer 2025 pending regulatory approvals.
Major shareholders, representing approximately 73% of ABOUT YOU, including the Otto Group and the Otto Family, have agreed to sell their shares either through the public offer or separate arrangements with Zalando. The joint efforts originating from this acquisition are hoped to enhance Zalando’s offerings as part of its strategy to optimize the European fashion e-commerce landscape, which combines both B2C and B2B elements.
Zalando expects that by integrating ABOUT YOU, both companies will increase their Gross Merchandise Value (GMV) and revenue at a rate of 5% to 10% annually until 2028. The acquisition is projected to yield an adjusted EBIT margin of 6% to 8%, substantially boosting profitability as they expand their market share in the estimated €450 billion European fashion market. With synergies anticipated to bring about €100 million annually, Zalando plans to execute a dual-brand strategy that maintains the unique identities of both brands while optimizing logistics and payment infrastructure through shared resources.
Moreover, ABOUT YOU’s SCAYLE software unit will enhance Zalando’s ZEOS e-commerce operating system, facilitating easier multi-channel management for brands and retailers across Europe. Overall, the collaboration seeks to redefine the fashion and lifestyle shopping experience, focusing on creating distinct and enriching offerings for both customers and partners.
In summary, Zalando’s acquisition of ABOUT YOU for €1.1 billion is a strategic move to strengthen its position in the European fashion e-commerce market. Both companies anticipate significant growth in GMV and revenue, and the integration will create operational synergies that could enhance profitability significantly. The commitment of current management to remain involved post-acquisition indicates a positive outlook for future collaboration and innovation in the sector.