Zalando and ABOUT YOU Announce Landmark Merger Agreement
Deal News | Dec 11, 2024 | EIN
Zalando and ABOUT YOU are set to merge, with Zalando submitting a voluntary public tender offer to acquire up to 100% of ABOUT YOU's share capital. This merger aims to expand their B2C and B2B offerings, creating a larger footprint in the European fashion e-commerce sector. ABOUT YOU's management board and major shareholders have shown strong support for the deal, which promises significant synergies, especially in logistics, payments, and commercial collaborations. The combined entity hopes to strengthen its market position with an increased GMV and revenue growth, targeting a significant share of the 450-billion-euro European market. ABOUT YOU will complement Zalando’s ecosystem strategy by enhancing its dual-brand strategy for creating distinct shopping experiences while also amplifying B2B capabilities through software mergers like SCAYLE and ZEOS. The deal, supported by prominent advisory firms, is expected to close in summer 2025, pending regulatory approvals.
Sectors
- Fashion and Apparel Industry
- E-Commerce Industry
- Software-as-a-Service (SaaS) Industry
Geography
- Europe – The merger targets expansion and consolidation in the European fashion e-commerce market.
- Germany – Both Zalando and ABOUT YOU are headquartered in Germany, making it a central geography for the merger.
Industry
- Fashion and Apparel Industry – The merger involves two major players in the fashion e-commerce sector, aiming to dominate the European market.
- E-Commerce Industry – Both Zalando and ABOUT YOU operate in the digital marketplace, offering fashion and lifestyle products online.
- Software-as-a-Service (SaaS) Industry – The deal highlights the significance of e-commerce platforms SCAYLE and Tradebyte, central to enhancing B2B services.
Financials
- 6.50 euros per share – The offer price Zalando intends to pay for each ABOUT YOU share, representing a premium over previous prices.
- 100 million euros – Estimated annual EBIT synergies from the merger.
- 450 billion euros – Represents the broader European fashion market size targeted by the combined entity.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Zalando | Bidding Company | Companies | A leading fashion and lifestyle e-commerce platform in Europe. |
| ABOUT YOU | Target Company | Companies | A German online fashion retailer targeting young, style-focused consumers. |
| Otto Group | Selling Company | Companies | One of the major shareholders of ABOUT YOU, agreeing to sell shares to Zalando. |
| Otto Family | Selling Company | Companies | A major shareholder and affiliate of the Otto Group, selling shares in the transaction. |
| HEARTLAND | Selling Company | Companies | Investment arm involved as a major shareholder in ABOUT YOU, participating in the sale. |
| J.P. Morgan | Financial Advisor to Zalando | Companies | Providing financial advisory services for the merger. |
| Sullivan & Cromwell | Legal Advisor to Zalando | Companies | Providing legal counsel for the transaction. |
| FGS Global | Communications Advisor to Zalando | Companies | Managing communications strategy for the deal. |
| Deutsche Bank | Financial Advisor to ABOUT YOU | Companies | Providing financial advice for ABOUT YOU in the merger. |
| White & Case | Legal Advisor to ABOUT YOU | Companies | Providing legal services for ABOUT YOU in this transaction. |
| BaFin | Regulatory Authority | Government | The German Federal Financial Supervisory Authority overseeing the publication of the offer document. |