Berlin-based fashion e-tailer Zalando has agreed to acquire Hamburg-based competitor About You for around €1.1 billion.

About You's major shareholders, which include Otto Group, Heartland and the company's management, have agreed to sell their stakes, which together account for about 73%. Zalando is offering €6.5 per About You share, well above Tuesday's market price of €3.9.

Even after the acquisition, the brands will operate independently in the B2C market and will retain their corporate style. At the same time, they plan to leverage synergies in the areas of logistics, infrastructure and business cooperation. Zalando currently reaches more than 50 million customers and offers over 6,000 fashion brands. About You focuses on a younger target group of more than 12 million customers. It offers them more than 700,000 styles and is in partnership with more than 27,000 content creators.

According to a press release, Zalando expects the transaction to be completed next summer, but the timetable may be affected by regulatory review by antitrust authorities.