Zalando and ABOUT YOU: A Strategic Merger to Redefine European Fashion E-commerce

In an exciting move to revolutionize the European fashion and lifestyle e-commerce market, Zalando has announced its intent to acquire up to 100% of ABOUT YOU’s share capital through a voluntary public tender offer. This landmark agreement brings together two industry leaders with complementary strengths and shared ambitions to create unparalleled customer experiences in both B2C and B2B markets.

A Generous Offer with Strong Shareholder Backing

The proposed acquisition offers 6.50 euros per share, representing a 12% premium over the median analyst target price of 5.80 euros and a 107% premium to ABOUT YOU’s three-month volume-weighted average share price as of December 10, 2024. Major shareholders, including Otto Group, Otto Family, HEARTLAND, and ABOUT YOU’s management, have already entered binding agreements to sell approximately 73% of the company’s share capital to Zalando. ABOUT YOU’s management and supervisory boards have also voiced their support for the transaction and intend to recommend that shareholders accept the offer.

Dual-Brand Strategy for B2C Excellence

Post-acquisition, Zalando plans to implement a dual-brand strategy in its B2C operations. While maintaining their distinct identities, both brands will leverage synergies in logistics, payment systems, and commercial operations. Zalando will continue to focus on its unparalleled assortment of over 6,000 lifestyle brands for more than 50 million customers, emphasizing personalization, sustainability, and inclusivity. ABOUT YOU will maintain its unique positioning, targeting younger, style-conscious audiences with its innovative, trend-driven approach that combines shopping with entertainment through live events and interactive social media experiences.

Unified B2B Platform for E-commerce Solutions

In the B2B domain, ABOUT YOU’s SCAYLE platform will complement Zalando’s ZEOS operating system. Together, these platforms will provide brands and retailers with a comprehensive toolkit to manage their multi-channel businesses across Europe. SCAYLE’s enterprise-grade software solutions, known for their scalability and profitability, will enhance the capabilities of ZEOS, enabling seamless integration of logistics, software, and service offerings. This strategic alignment will cater to both direct-to-consumer webshops and marketplace sales, ensuring a robust and unified platform for all clients.

Value Creation and Synergy Potential

This merger unlocks significant opportunities for value creation in areas such as logistics, payments, and commercial collaborations. Zalando anticipates group EBIT synergies of approximately 100 million euros annually in the long term. Additionally, the combined entity aims to achieve a compound annual growth rate of 5% to 10% for GMV and revenue through 2028, with an adjusted EBIT margin of 6% to 8% by the same year.

Cultural Alignment and Leadership Continuity

The merger unites two founder-led teams with a shared entrepreneurial spirit and complementary expertise. ABOUT YOU’s founders—Sebastian Betz, Tarek Müller, and Hannes Wiese—will continue in their roles, contributing to the combined group’s strategic vision. This cultural alignment ensures a smooth integration process and positions the group for long-term success.

A Commitment to Sustainability and Inclusivity

Beyond business objectives, the merger reinforces both companies’ commitment to creating a more sustainable and inclusive fashion industry. Initiatives like FASHION LEAP FOR CLIMATE and FASHION AGAINST FASCISM highlight their shared dedication to empowering customers with informed, responsible shopping decisions. The combined scale and influence of Zalando and ABOUT YOU will further these efforts, driving positive change across the industry.

What This Means for Shareholders and Customers

The offer represents a significant value realization for ABOUT YOU’s shareholders, with the transaction expected to close in the summer of 2025, pending regulatory approvals. For customers, the merger promises enhanced shopping experiences through tailored offerings, innovative technologies, and expanded product assortments.

A Unified Vision for European E-commerce

Together, Zalando and ABOUT YOU are set to capture a larger share of Europe’s 450-billion-euro fashion market. By combining their strengths in B2C and B2B operations, the group will redefine e-commerce across the continent, providing unmatched value to customers, brands, and partners alike.

For more e-commerce updates, you can check our other blogs: https://channelinker.com/e-commerce/