Zalando engulfs rival business About You
Zalando engulfs rival business About You
Until now, most of the fashion e-retailer About You was under the control of the Otto family. However, Zalando aims to shift that dynamic and take over its rival. After the announcement of the acquisition plans, Zalando's shares initially saw a drop.
Online retail giant Zalando has declared its intention to acquire competing e-retailer About You. Zalando intends to make a voluntary public takeover bid for up to 100% of About You's share capital, as per the companies' announcement. The significant shareholders of About You - retail giant Otto, the Otto family, investment firm Heartland, and the company's CEOs - have reportedly agreed to sell their shares to Zalando, which account for 73%.
"Zalando and About You are teaming up to mold the European fashion and lifestyle e-commerce market collectively," the two companies stated. By merging their services, both retailers could potentially "cater better to the distinct needs of customers and partners and cover a wider section of the European market for fashion and lifestyle e-commerce." After the announcement, Zalando's shares temporarily fell by 9%.
Founded in 2008 and headquartered in Berlin, Zalando boasts over 50 million active customers in 25 European markets. The company employs more than 15,000 people and reportedly generated around €10 billion in revenue last year.
Founded in 2014 and based in Hamburg, About You was launched as a subsidiary of Otto by Tarek Müller, Sebastian Betz, and Hannes Wiese. They continue to hold roles in the company, acting as its CEOs. The company generated €1.9 billion in revenue during the 2022/2023 fiscal year and employs 1,500 people, catering to customers in 29 European countries.
"Zalando's ambitious acquisitions and mergers strategy includes the planned takeover of its rival, About You, which could significantly reshape the European fashion e-commerce market."
"Following the completion of the acquisitions and mergers, Zalando and About You are expected to leverage their combined strengths to offer a more comprehensive and tailored service to their customers across Europe."