Through this definitive business combination agreement, Zalando and ABOUT YOU intend to cover a scaled share of the European fashion and lifestyle ecommerce market. Also, under the deal, Zalando is set to submit a voluntary public tender offer to acquire up to 100% of ABOUT YOU’s share capital. ABOUT YOU’s management and supervisory boards underlined that the strategic transaction combines two companies with a cultural fit, entrepreneurial experience, and complementary features. Currently, Zalando is reviewing the soon-to-be-published offer document.
Additionally, the boards of ABOUT YOU are set to recommend that shareholders go ahead with the offers. The company mentions Otto Group, Otto Family, HEARTLAND, and the ABOUT YOU management, which entered into binding agreements to sell their shares. These represent nearly 73% of ABOUT YOU’s share capital. Zalando achieved the deal to acquire ABOUT YOU for EUR 1.1 billion, corresponding to EUR 6.50 per share, a 107% premium to the company’s three-month average stock price.
By integrating ABOUT YOU’s operations into its business, Zalando is set to add more scale and complementary features, while also advancing its ecosystem strategy to develop a pan-European fashion and lifestyle ecommerce system around two growth components, B2B and B2C, to improve its relationship with its customers and partners. Representatives from Zalando commented on the deal, mentioning that in B2C, the merged offering can deliver customers and brands a more optimised shopping experience, while in B2B, by combining their complementary software features, Tradebyte and SCAYLE, can provide an improved ecommerce operating system that allows brands and retailers to manage their multi-channel business across Europe and globally.
Furthermore, the agreement between ABOUT YOU and Zalando intends to provide more sustainability and inclusivity in the fashion and lifestyle industry, with the joint group having the ability to scale its relevance for customers and brands. The transaction is set to close in the summer of 2025, with it still subject to receiving relevant regulatory approvals. In addition, the offer document and other details regarding Zalando’s intended public tender offer are planned to be prepared according to the German Securities Acquisition and Takeover Act. The offering document is set to be released after receiving approval from the German Federal Financial Supervisory Authority (BaFin).
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