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Rad Power Bikes reaches deal to sell itself for $13.2 million
Rad Power Bikes has agreed to sell itself to Life Electric Vehicles Holdings for $13.2 million, following a bankruptcy filing. Life EV emerged as the top bidder in an auction of Rad's assets, which saw bids start at $8 million. This acquisition reflects broader industry struggles, as many micromobility companies face financial difficulties. The deal awaits bankruptcy court approval.
Key points
- Rad Power Bikes reached a $13.2 million sale agreement with Life Electric Vehicles Holdings shortly after filing for bankruptcy.
- Life EV, Florida-based, specializes in light electric vehicles and won the auction against five other bidders.
- Rad Power's liabilities bring the total deal value to $14.9 million, significantly below its peak valuation of $1.65 billion in October 2021.
- Retrospec submitted a backup bid of $13 million.
- Rad Power has struggled with declining sales post-pandemic, layoffs, and battery safety issues linked to reported fires.
Why it matters
- The micromobility sector has faced significant financial challenges recently, similar to those of VanMoof and Bird, highlighting a turbulent environment.
- The pandemic caused a surge in e-bike sales, which has since waned, affecting many companies in the industry.
- Current trends include a push for sustainability and electric vehicle adoption, making the fate of Rad Power noteworthy in a larger context of electric mobility.
The sale of Rad Power Bikes to Life Electric Vehicles marks a significant shift in the micromobility landscape, showcasing ongoing challenges faced by the sector while also reflecting the persistent interest in electric mobility solutions.