## Rad Power Bikes Acquired by Life Electric Vehicles in a Pivotal Bankruptcy Deal
In a significant development for the electric bike industry, Rad Power Bikes, once a soaring star in the micromobility sector, has officially found a new owner. Following a brief but intense bankruptcy process, the company has secured a deal to sell itself to Life Electric Vehicles Holdings (Life EV) for approximately $13.2 million. This acquisition, which comes just over a month after Rad Power initiated bankruptcy proceedings, marks a new chapter for the brand.
Life EV, a Florida-based entity, positions itself as a key player in the “light electric vehicle industry,” specializing in the development, manufacturing, and distribution of such products. While their website currently showcases a range of electric bikes, many were listed as “sold out” at the time of this report, indicating either high demand or limited inventory.
### The Intense Bidding War for Rad Power’s Assets
The path to acquisition was paved through a competitive auction process, detailed in a recent bankruptcy docket filing. Held on January 22nd, the auction saw five distinct entities vying for Rad Power’s assets. The initial bid opened at a substantial $8 million, sparking a series of escalating offers until Life Electric Vehicles emerged victorious. When accounting for Rad Power’s existing liabilities, the total value of Life EV’s winning bid ascends to $14.9 million.
Securing the second-highest bid was fellow e-bike manufacturer Retrospec, with an offer of $13 million. Retrospec has been designated as the “backup bidder,” ready to step in should the primary agreement with Life EV falter. It’s crucial to note that this acquisition is still subject to final approval by the bankruptcy court judge.
### A Stark Contrast: From Billion-Dollar Valuation to Distressed Sale
The sale price represents a dramatic departure from Rad Power Bikes’ peak valuation. Back in October 2021, the company commanded an impressive $1.65 billion valuation, according to PitchBook data. This stark contrast underscores the challenging trajectory Rad Power has experienced in recent years. Over its operational history, the company successfully raised a total of $329.2 million in funding, as also reported by PitchBook.
Rad Power’s journey through bankruptcy is not an isolated incident within the burgeoning micromobility landscape. Several of its peers have faced similar financial headwinds and structural overhauls. Companies like VanMoof and Cake have undergone significant restructurings and ultimately found new ownership, while scooter-sharing giant Bird also navigated its own bankruptcy process. This trend highlights a period of intense consolidation and re-evaluation across the sector.
### The Road Ahead: Unveiling Life EV’s Vision for Rad Power
The precise plans Life EV has in store for the Rad Power brand remain somewhat opaque. When queried about future strategies, Life EV CEO Robert Provost directed inquiries towards Rad Power itself, offering a brief but tantalizing glimpse into their outlook. “There is still a process underway and there is an exciting future being planned for Rad Power,” Provost stated in a message, hinting at upcoming developments without divulging specifics. TechCrunch’s attempts to reach Rad Power for comment on the matter were unsuccessful prior to publication.
### Unpacking Rad Power’s Recent Challenges
Rad Power’s recent struggles mirror those of many companies that experienced a meteoric rise during the pandemic-driven surge in micromobility demand. The initial boom, fueled by changing commuting habits and a desire for outdoor activities, eventually subsided, leaving many companies grappling with waning momentum and overstocked inventories.
#### Post-Pandemic Realities and Operational Hurdles
Beyond the broader market shifts, Rad Power faced a series of internal and operational challenges. The company endured multiple rounds of layoffs in recent years, underwent leadership changes with shifts in its CEO position, and confronted significant scrutiny regarding the safety of some of its products.
#### Navigating Critical Battery Safety Concerns
A particularly pressing issue involved reports of older Rad Power batteries catching fire. The Consumer Product Safety Commission (CPSC) identified 31 reported incidents linked to these batteries, prompting a critical examination of product safety. At the time, Rad Power publicly maintained its position, stating to TechCrunch that it “firmly stands behind our batteries and our reputation as leaders in the e-bike industry, and strongly disagrees with the CPSC’s characterization of certain Rad batteries as defective or unsafe.” Despite their defense, the incidents undoubtedly added to the company’s operational complexities and public perception challenges leading up to its eventual sale.
**Editor’s Note:** This article was curated and enhanced for our readers.
*Source: TechCrunch*