(Image Source: www.zalando.pl)
Zalando and ABOUT YOU Holding SE announced a strategic partnership aimed at reshaping the industry. This collaboration unites two of the region’s leading e-commerce platforms to deliver innovative shopping experiences while creating unparalleled opportunities in both B2C and B2B markets.
Zalando wants to acquire ABOUT YOU
Zalando has put forth a voluntary public takeover offer to acquire up to 100% of ABOUT YOU’s share capital. The proposed offer of €6.50 per share represents a significant premium, reflecting a 12% increase over analysts’ median price target of €5.80 and a 107% premium on the three-month average share price as of December 10, 2024. ABOUT YOU’s main shareholders, including the Otto Group, HEARTLAND, and its management team, have committed to selling their shares, which together represent approximately 73% of the company’s equity.
This merger is more than a business transaction; it is a meeting of minds. Both Zalando and ABOUT YOU share a founder-led culture and a commitment to innovation. ABOUT YOU’s founders and co-CEOs, Sebastian Betz, Tarek Müller, and Hannes Wiese, will remain at the helm of their company, continuing to lead in their current roles within the merged group.
Zalando’s and ABOUT YOU’s collaboration
The partnership is designed to harness the unique strengths of each brand. In the B2C sector, the two companies will maintain distinct identities to cater to their respective audiences. Zalando will continue to appeal to fashion enthusiasts, offering a curated selection of over 6,000 lifestyle brands. Its seamless shopping experience is known for its premium quality, personalized recommendations, and inclusive approach. ABOUT YOU, meanwhile, is renowned for its trendsetting style, engaging a younger audience with dynamic shopping experiences enhanced by social media collaborations, live events, and exclusive collections from international celebrities.
In the B2B realm, ABOUT YOU’s SCAYLE software platform will complement Zalando’s ZEOS e-commerce operating system. Together, they will provide brands and retailers with a unified platform for managing multichannel e-commerce operations. This integration will empower partners to optimize logistics, payment processing, and commercial functions, helping them scale across Europe.
Sustainability and inclusivity as priorities
The merger underscores a shared vision for sustainability and inclusivity. Both companies are committed to driving positive change in the fashion industry through initiatives like FASHION LEAP FOR CLIMATE and FASHION AGAINST FASCISM. Their combined efforts aim to provide customers with better tools to make informed, sustainable choices.
The deal promises substantial value creation, with long-term synergies projected to add approximately €100 million annually to group EBIT. The combined company expects to achieve a compound annual growth rate of 5-10% in gross merchandise volume and revenue by 2028. The adjusted EBIT margin is forecasted at 6-8%, translating into a significant increase in profitability.
When will Zalando acquire ABOUT YOU?
The transaction is anticipated to close in the summer of 2025, pending regulatory approvals. Upon completion, Zalando and ABOUT YOU will operate as a cohesive entity, leveraging their combined expertise to expand their footprint in the €450 billion European fashion market. This partnership sets the stage for a future where tailored shopping experiences and cutting-edge e-commerce solutions redefine customer and partner expectations.
By uniting their strengths, Zalando and ABOUT YOU aim to shape the future of fashion and lifestyle e-commerce in Europe. Their collaboration not only reflects a strategic alignment but also a shared commitment to innovation, sustainability, and delivering unmatched value to customers and partners alike.
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