After being picked up twice in the last five years, Segway has found a new home as a wholly owned subsidiary of rival Ninebot. The deal isn't complete, but Ninebot has received $80 million from investors to see the transaction through to completion.
At the JW Marriott Hotel in Beijing, Ninebot announced the deal and revealed that it has the backing of Sequoia Capital, Shunwei Foundation and Xiaomi's MIUI Technology to the tune of $80 million in 'A' round investment.
Rod Keller, president of Segway, acknowledged the deal in a press release. Segway is completely confident in its future, he stated.
"The strategic alliance with Ninebot will enable us to provide more intelligent and valuable products for our customers," said Keller.
Acquisitions can wash away animosities and that may be the case with Segway and Ninebot. Last year, Segway accused Ninebot of infringing on its intellectual properties and filed a formal complaint with the US International Trade Commission (ITC).
Ninebot and other manufacturers of short-distance transportation devices were named in Segway's lawsuit last fall and US ITC was encouraged to investigate "the sale for importation, or the sale within the United States after importation of certain personal transporters, components thereof, and manuals therefor by reason of infringement of one or more of claims" related to five of Segway's patents.
There were 13 organizations named as respondents in the suit, two of which were Ninebot USA and Ninebot China. But after being moved from CEO Out in 2010 to Summit Strategic Investments in 2013, Segway now finds a partner in a rival and enough capital to move beyond past difference.
After bouncing around between companies, Ninebot may help Segway realize its vision. While short-distance transport vehicles are often derided in the states, the New Hampshire-based firm, Segway, now gains a much larger footprint in the Chinese market where the transports are generally mocked or seen as products for the rich and lazy.
Segway will stand on its own in Ninebot's fold and the two companies will operate under their own brands, but the deal will help spur new technologies and products, according to Gao Lufeng, founder and CEO of Ninebot. The combined powers of the two companies have the potential to develop new innovations in the market for short-distance transportation, he stated.
"After establishing the alliance, the company will apply a series of technologies into its future products, covering electric driving, mobile internet, and man-machine interaction," said Lufeng.
