TVS Motor Company Acquires 75% Stake in Switzerland's e-bike Swiss E -Mobility for $100 million Cash Deal
The acquisition has made in an all-cash deal through TVS Motors Singapore subsidiary, TVS Motor (Singapore).
On Thursday, the TVS motor company has made an announcement, that it has acquired 75% stake in Switzerland's largest e-bike players, Swiss E-mobility Group (SEMG) for consideration for $100 million. The above move, highlights that, TVS company is betting big on personal e-mobility market, both in India as well as Europe.
The acquisition has made in an all-cash deal through TVS Motors Singapore subsidiary, TVS Motor (Singapore).
This buyout is in line with TVS Motor's strategy to expand in Europe through a portfolio of premium as well as technology leading brands, which include Norton Motorcycles and EGO Movement, which were recently acquired.
SEMG is a market leading provider of e-mobility solutions within the DACH region, thus operating the largest pure-play e-bike retail chain M-way in Switzerland with close to $100 million in revenue.
Sudarshan Venu, Joint MD, TVS Motor Company has stated to Media persons over a virtual meet, that the company would take SEMG products to the rest of the world including India by the end of present year. Presently, the products are available in Switzerland and Germany. E-bikes would have significant market in India, going forward.
The TVS Motor company also plans to buy the remaining 25% stake by the next year. The SEMG do have market share of 20% in Switzerland and reported close to $100 million in revenue previous year.
Sudarshan also added, acquisition would help synergies with TVS motor's electric mobility portfolio and supply chain management as the company is stepping towards making progress by rolling out a range of EV products for India as well as the rest of the world.
The e-bikes are establishing themselves as the de-facto form of personal mobility in Europe because of increased ease of usage and the overall perception that it is a sustainable form of transport and regulatory support. With the present penetration nearing to 15% of the total bicycle population in Europe and growing at CAGR of 18%, the market for the e-bicycle tend to hold significant growth potential, he added.