Life EV acquires Rad Power Bikes for $13.2 million

Life Electric Vehicles Holdings, also known as Life EV, has acquired the intellectual property, inventory, and certain operating assets of Rad Power Bikes. The transaction was completed for an acquisition price of $13.2 million. The acquisition follows the news that Rad Power Bikes filed for Chapter 11 bankruptcy protection—the US bankruptcy protection process—in December. Prior to this filing, the electric bicycle company had struggled for months and warned its employees that it might have to shut down operations entirely without new capital.

The $13.2 million acquisition price stands in contrast to the venture capital previously raised by Rad Power Bikes, which totaled nearly $330 million. Despite the bankruptcy filing, Life EV plans to keep the company intact. The acquiring firm plans to continue retail operations under the Rad Power Bikes brand in the United States. To address concerns from the user base, Life EV also pledged to support existing customers who might be wondering what would become of their bike warranties or even gift cards.

Additionally, Life EV plans to expand the retail footprint in select key markets. The company stated that the acquisition fits into its broader strategy of expansion across North America. The Florida-based Life EV has built its business by acquiring, developing, and scaling electric bicycle and micro-mobility brands. While Rad Power is perhaps its highest-profile purchase, Life EV holds an equity interest in LEV Manufacturing, Inc., which is a subsidiary of Life EV. LEV Manufacturing, Inc. previously acquired Serial 1, a premium electric bicycle brand originally developed and spun off from Harley-Davidson.

Why it matters

This acquisition highlights the ongoing consolidation in the micro-mobility sector, where Life EV is absorbing assets from a company that previously raised nearly $330 million in venture capital before filing for bankruptcy protection.