TVS Motor Company, the flagship of the $8.5-billion TVS Group, on Thursday announced the acquisition of Switzerland-headquartered e-bike maker EGO Movement for a consideration of 16.6 million Swiss franc (CHF).
After the acquisition, TVS Motor plans to grow the e-bike business across Europe and later expand to the US and Indian markets. The company expects to generate revenue of $100-150 million from the e-bike business in another five years.
TVS Motor has bought an 80 per cent stake in EGO Movement in an all-cash deal through its subsidiary TVS Motor (Singapore). This is its second major acquisition in Europe after Norton Motorcycles.
Led by co-founders Daniel Meyer and Marie So, EGO Movement is a Swiss technology company providing mobility solutions through a portfolio of e-bikes, e-cargo bikes, and e-scooters. The company combines designs with software and hardware and has an omnichannel network across Switzerland, Liechtenstein and Germany with plans to expand across Europe.
Sudarshan Venu, joint MD, TVS Motor, told a select media briefing that the e-bike space has been dramatically growing, particularly in Europe and America, and Asian countries including India will also be following the trend, sooner than later.
“This will be an important personal mobility product going forward. Since we are committed to be a personal mobility company, we need to have different products in the two-wheeler segment, and that is why we are entering the e-bike segment,” he said.
He said the Swiss firm is profitable and has 40 workers. It had posted a revenue of 5 million CHF last year and was planning to double it this year. The company has 10 outlets in Switzerland and Germany. It will have 20 stores by 2022 and 32 by 2025.
Currently, EGO has several products in city, hybrid and cargo variants and plans are on to double them. EGO plans to sell 3,500 units in 2021 with an average price of CHF 3,300.
“Our initial focus will be Europe. Then we will look at India, the US and other markets. In Europe, we would like to scale it up exponentially. It is also an important milestone in our journey to grow our presence in Europe, with the Norton Motorcycles acquisition last year and now the launch of e-bike business,” he said.