Zalando has announced the acquisition of About You, one of its main competitors in the European e-commerce market, in a €1,1 billion transaction. Aiming to strengthen its position in online retail, the German e-commerce platform is seeking to capture a larger share of the fashion and lifestyle market.
Founded in 2008 in Berlin, Zalando has grown to serve over 50 million customers across Europe. Over the years, it has acquired several companies, such as Highsnobiety and Meepl, raising nearly €470 million in funding. The deal now involves the acquisition of 100% of About You shares, at a price per share of €6,50, but requires approval from European authorities. If all goes well, the transaction will be completed in 2025.
Zalando emphasized that the two companies' complementary strengths "will perfectly align to offer customers a comprehensive and optimized offering" across Europe. In the long term, the merger is expected to generate cost savings of approximately €100 million annually.
About You, founded in 2014 as a subsidiary of the Otto Group, currently has over 12 million customers. But Zalando's main goal is to counter the growing competition from Chinese platforms like Shein and Temu, which are pushing fast fashion to increasingly aggressive levels in Europe, putting pressure on e-commerce platforms as well.
