On-line trend retailer Zalando has introduced plans to amass rival About You for €1.1 billion, aiming to ascertain a number one pan-European e-commerce platform.
The proposed money provide of €6.50 per share represents a 107% premium over About You’s three-month common inventory worth.
“Redefining trend and way of life buying by creating the absolute best expertise for purchasers and companions has all the time pushed each our groups. I’m enthusiastic about how collectively we’ll be capable of cowl a bigger share of the style and way of life market,” mentioned Robert Gentz, Co-CEO and Co-founder of Zalando. “In B2C, we will provide clients and types distinct and wealthy buying experiences. In B2B, combining our complementary software program capabilities, Tradebyte and SCAYLE, will create an much more superior e-commerce working system that allows manufacturers and retailers to handle their multi-channel enterprise throughout Europe and past.”
Based in 2008, Zalando has grown into considered one of Europe’s largest on-line trend platforms, serving over 50 million clients throughout a number of nations. About You, launched in 2014 as a subsidiary of the Otto Group, has additionally made vital strides within the e-commerce trend sector serving over 12 million energetic clients. Otto introduced About You onto the inventory alternate three and a half years in the past at a difficulty worth of 23 euros per share.
This acquisition marks the subsequent chapter for About You, an organization that we at EU-Startups have beforehand coated as considered one of Europe’s thrilling tech shares to observe in 2022 and earlier this 12 months as a unicorn attaining profitability amidst robust market situations.
The acquisition is predicted to reinforce the mixed entity’s presence in European markets, with a focused adjusted earnings earlier than curiosity and taxes (EBIT) margin of 10-13%
Main shareholders of About You, together with the Otto Group, the Otto household, HEARTLAND, and the corporate’s administration workforce, have entered into binding agreements to promote their shares to Zalando, which symbolize roughly 73% of the share capital. The administration board and supervisory board of About You have got expressed help for the transaction and intend to advocate that remaining shareholders settle for the provide.
“The deliberate two-brand technique would considerably improve the group’s presence within the pan-European markets,” mentioned About You’s main shareholder, German retail group Otto.
The acquisition comes amid growing competitors from low-cost fast-fashion retailers like Shein, which have considerably impacted European on-line retailers. By combining sources, Zalando and About You purpose to strengthen their market place and provide distinct buying experiences to higher serve clients and companions.
The deal is topic to regulatory approvals and is predicted to be finalised by the summer time of 2025. Upon completion, About You’s administration board members—Sebastian Betz, Tarek Müller, and Hannes Wiese—will proceed of their present roles throughout the mixed group, bringing collectively two founder-led groups.
A dual-brand technique can be carried out, permitting every model to retain its distinct id whereas leveraging synergies in logistics, cost infrastructure and industrial collaboration.
“We’re thrilled to workforce up with so many good entrepreneurial colleagues and collectively transfer the success tales of Zalando and ABOUT YOU to the subsequent stage,” mentioned Tarek Müller, the Co-founder and Co-CEO of ABOUT YOU. “This transaction creates one thing really distinctive, with two distinct and unbiased B2C companies serving the particular wants of their clients. On the similar time, the complementary strengths of the B2B companies will seamlessly align to ship a complete and optimized provide for shoppers in logistics, software program and providers.”
This buy highlights Zalando’s work in increasing its footprint within the European trend and way of life market, reportedly valued at €450 billion, leveraging synergies in logistics, funds, and industrial collaboration to drive progress and profitability.
The buyout was introduced this morning by way of the Zalando company press launch and a media convention.
