TVS Motor acquires Swiss e-bike maker SEMG for $100M

TVS Motor Company has acquired a 75% stake in Switzerland’s e-bike player Swiss E-Mobility Group (SEMG) for consideration of $100 million in an all-cash deal.

TVS Motor Swiss

Betting big on the personal e-mobility market in Europe and India, TVS Motor Company on Thursday announced the acquisition of a 75% stake in Switzerland’s largest e-bike players Swiss E-Mobility Group (SEMG) for consideration of $100 million. The acquisition has been made in an all-cash deal through TVS Motor’s Singapore Subsidiary, TVS Motor (Singapore) Pte.

The buyout is in line with TVS Motor’s strategy to expand in Europe through a portfolio of premium and technology-leading brands, including Norton Motorcycles and EGO Movement, which were recently acquired. The company had acquired Switzerland-headquartered e-bike maker EGO Movement for a consideration of 16.6 million Swiss franc (CHF), in September 2021.

SEMG is a market-leading provider of e-mobility solutions within the DACH region, operating the largest pure-play e-bike retail chain M-way in Switzerland with close to $100 million in revenue.  

SEMG has a prestigious Swiss mobility brands portfolio, including Cilo, Simpel, Allegro, and Zenith – Bikes. By combining its extensive physical network and e-commerce platform with two online platforms and 31 physical stores, SEMG is in a position to deliver a seamless and world-class customer experience.

Sudarshan Venu, joint MD, TVS Motor Company, told media persons over a virtual press meet that the company will take SEMG products to the rest of the world including India by the end of the current year. Presently, the products are available in Switzerland and Germany. E-bikes will have a significant market in India, going forward.

“This acquisition furthers TVS Motor’s commitment towards e-personal mobility products. We are strengthening our presence in the rapidly growing e-bikes segment. SEMG has strong omnichannel distribution and aspirational brands and believes that this company will also have synergies with TVS Motor’s other businesses,” he said.

TVS Motor plans to buy the remaining 25% stake by next year.  SEMG has a market share of 20% in Switzerland and reported close to $100 million in revenue last year.

This acquisition will have synergies with TVS Motor’s electric mobility portfolio and supply chain management as the company is making progress in rolling out a full range of EV products for India and the rest of the world, Sudarshan said.

E-bikes are establishing themselves as the de-facto form of personal mobility in Europe due to the increased ease of usage, regulatory support, and overall perception as a sustainable form of transport. With a current penetration of approximately 15% of the total bicycle population in Europe and growing at a CAGR of 18%, the market for the e-bicycle holds significant growth potential, he added.

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