“Bargain”
Zalando announces takeover of competitor About you
Updated 12/11/2024 – 1:05 p.mReading time: 2 min.
the online mail order company Zalando has announced the takeover of its competitor About You. Experts call it a “bargain”.
The online mail order company Zalando has announced the takeover of its competitor About You. Zalando intends to make a voluntary public takeover offer for up to 100 percent of About You’s share capital, both companies announced on Wednesday. Zalando offers 6.50 euros per share, a total of around 1.1 billion euros. On Tuesday evening the share price was still at 3.90 euros.
zalando has already secured a large part of the shares: About You’s main shareholders – the mail order company otto, the Otto family, the investment company Heartland and the founders and bosses of the company – have reportedly committed to selling their shares to Zalando.you therefore hold 73 percent.
As capital market expert Jürgen molnar from the broker Robomarkets says in an initial assessment, the purchase price could be “a bargain” given the price progress of About You. Because of the amount of the takeover premium, he assumes “promising future fantasies after a merger.”
“Zalando and About You are joining forces to shape european fashion and lifestyle e-commerce,” the two companies said. By combining their offerings, both mail order companies could “serve the individual needs of customers and partners even more specifically and cover a larger share of the European market for fashion and lifestyle e-commerce.”
The sale is expected to be completed by summer 2025 – subject to regulatory approvals, the companies said. The online retailers expect long-term synergies of 100 million euros per year from the merger, which will be achieved in both the corporate customer business and the end customer business.
the previous managing directors of About You, which was founded in 2014 as a subsidiary of Otto, Sebastian Betz, Tarek Müller and Hannes Wiese, will remain active in the company even after the takeover. According to the company, the merger will not result in any major job cuts. Sales in the 2022/2023 financial year amounted to 1.9 billion euros. The company, which has 1,500 employees, says it is active in 29 European countries.
Zalando, based in Berlin, was founded in 2008 and claims to have more than 50 million active customers in 25 European markets. More than 15,000 people work for the company, and sales last year amounted to around ten billion euros.
Interview Between Time.news Editor and E-Commerce Expert
time.news Editor: Welcome to Time.news, where we bring you the latest insights and trends shaping our world. Today, we have the pleasure of speaking with Dr. Anna Fischer, an e-commerce expert and market analyst, to discuss the recent acquisition of the online fashion retailer About You by Zalando. Welcome, Dr. Fischer!
Dr. Anna Fischer: Thank you for having me! It’s great to be here.
Editor: Zalando’s announcement to take over About You has certainly sent shockwaves through the e-commerce space. What do you think are the primary motivations behind this acquisition?
Dr. Fischer: Absolutely, this is a meaningful move in the e-commerce landscape. There are a few motivations at play here.Firstly, by acquiring About You, Zalando is looking to expand its customer base and market share in the increasingly competitive online fashion sector. Secondly, this acquisition allows Zalando to leverage About You’s unique platform and marketing strategies, which cater well to younger consumers.
Editor: That’s interesting! Do you think this acquisition will lead to a shift in the competitive dynamics of the online fashion market?
Dr.Fischer: for sure. This merger could make zalando the dominant player in the market, especially in regions where both brands are strong. It may also pressure smaller competitors to either innovate or seek similar alliances. The consolidation we’re seeing can lead to better pricing strategies, increased economies of scale, and a stronger negotiation position with suppliers.
Editor: You mentioned the consumer base.How do you think About You’s audience will respond to being integrated into Zalando’s offerings?
Dr. Fischer: Well, it all depends on how well Zalando manages the transition. About You has cultivated a loyal customer base with a strong emphasis on personalization and social shopping experiences. If Zalando can maintain that engagement while integrating the infrastructure of both companies, it might actually enhance customer satisfaction. However, any missteps could result in customer attrition, so they need to tread carefully here.
Editor: Given the current market trends, how do you foresee the future of e-commerce evolving considering such acquisitions?
Dr. Fischer: I believe we’re moving towards more consolidation in e-commerce, especially among fashion retailers. Companies are increasingly recognizing that collaboration can yield greater profitability compared to working in isolation. We may also see a stronger focus on sustainability and ethical practices as consumers demand more transparency from brands.
Editor: That’s a crucial point. With sustainability being a hot topic, how do you think Zalando will address this through their acquisition of About You?
Dr. Fischer: It will be essential for Zalando to incorporate enduring practices from About You into its own operations. This could involve strengthening supply chain transparency, increasing the availability of eco-friendly products, and enhancing their overall corporate responsibility initiatives. Both brands have an opportunity to amplify their commitment to sustainability, which could resonate well with their shared customer base.
Editor: As we wrap up, what key takeaway should industry observers focus on regarding this acquisition?
Dr. Fischer: The key takeaway would be the indication of industry trends towards consolidation and the necessity for agility in the online fashion sector. Companies that can adapt and innovate in their offerings will likely emerge as winners in this rapidly evolving market landscape.
Editor: Thank you, Dr. Fischer, for sharing your insights with us today.It’s clear that this acquisition is a pivotal moment for zalando and the broader e-commerce market.
Dr. fischer: My pleasure! It’s always exciting to discuss how the industry is evolving. Thank you for having me!
Editor: And thank you to our audience for tuning in. Stay updated with Time.news for more insights into the world of e-commerce and beyond.