Who acquired Rad Power Bikes?

Life Electric Vehicles Holdings acquired Rad Power Bikes for approximately $13.2 million.

Why did Rad Power Bikes go bankrupt?

Rad Power Bikes, like many micromobility companies, faced challenges after a pandemic sales surge when demand shifted, and also dealt with issues related to its older batteries.

What was Rad Power Bikes' peak valuation?

Rad Power Bikes' peak valuation was $1.65 billion in October 2021.

Home / Business and Economy / Rad Power Bikes Sells for $13.2M in Bankruptcy Deal

Rad Power Bikes Sells for $13.2M in Bankruptcy Deal

27 Jan

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Summary

Rad Power Bikes sold for $13.2 million in bankruptcy proceedings.
Life Electric Vehicles Holdings is the acquiring company.
The sale price is a steep discount from its 2021 valuation.

Rad Power Bikes Sells for $13.2M in Bankruptcy Deal

Electric bike manufacturer Rad Power Bikes has agreed to be acquired by Life Electric Vehicles Holdings for approximately $13.2 million. This sale follows Rad Power's initiation of bankruptcy proceedings just over a month ago. The acquisition is still subject to approval by the bankruptcy judge.

Five entities participated in an auction for Rad Power's assets on January 22, with Life EV emerging as the winning bidder. The total value of Life EV's bid, when including Rad Power's liabilities, amounts to $14.9 million. Retrospec, another e-bike company, submitted the second-highest bid of $13 million and has been designated as a backup bidder.

This sale represents a substantial decline from Rad Power's peak valuation of $1.65 billion in October 2021. Like many companies in the micromobility sector, Rad Power experienced a surge in sales during the pandemic, but later faced challenges as demand shifted. The company has undergone multiple rounds of layoffs and has also dealt with issues related to its older batteries, which were linked to 31 reported fires.