Zalando to Buy German Retailer About You for $1.3 Billion (3)

Zalando SE, the German online fashion retailer, agreed to buy rival About You Holding SE for around €1.2 billion ($1.3 billion), in a bid to dominate Europe’s e-commerce market.

Berlin-based Zalando said Wednesday it will offer €6.50 per share for About You. That’s a premium of about 67% to the closing price Tuesday.

The deal will help Zalando increase its share of the €450 billion European fashion and lifestyle market amid intensifying competition. Besides gaining access to About You’s younger customer base, Zalando estimates the combination will generate about €100 million a year in synergies or cost-savings in the ...