Dec 11 (Reuters) - German online retailer Zalando said on Wednesday it would acquire fashion group About You in a deal valuing its rival at 1.1 billion euros ($1.2 billion), as part of plans to form a pan-European e-commerce platform.
Zalando shares fell 8% by 0710 GMT in early Frankfurt trade following the news.
Zalando said that About You's major shareholders Otto GmbH and an investment company controlled by Heartland A/S, as well as the retailer's board members, have resolved to accept the offer of 6.50 euros per share.
The combined business of Zalando and About You aims to have an adjusted earnings before interest and taxes (EBIT) margin of between 10% and 13%, Zalando said in a statement.
($1 = 0.9502 euros)
Reporting by Andrey Sychev, editing by Rachel More
Source: Reuters