Electric bike company Rad Power Bikes has been sold to Life Electric Vehicles Holdings (or Life EV) for $13.2 million, after months of uncertainty surrounding its future.
The Seattle based e-bike company Rad Power Bikes filed for Chapter 11 bankruptcy protection late last year after citing “significant financial challenges” in November. The company’s reported liabilities mounted to nearly $73 million, more than double its assets of $32 million.
Last Thursday, 22 January, an auction took place to acquire the company. The first bid of $8 million was eclipsed by Life EV, who agreed to pay $13.3 million, with an additional $1.6 million to cover liabilities. If the sale goes ahead, Rad Power Bikes could join Life EV’s stable of e-bikes and Harley-Davidson Serial 1 brand bikes.
At its peak in 2021, Rad Power Bikes was valued at $1.65 billion, making Life EV’s purchase price around 99% lower than that peak valuation.
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