Rad Power Bikes Reaches Deal to Sell Itself for $13.2M

Electric bicycle maker Rad Power Bikes has agreed to sell the company to Life Electric Vehicles Holdings, or Life EV, for approximately $13.2 million, just over a month after filing for bankruptcy protection.

Life EV, which is based in Florida, describes itself as a developer, manufacturer, and distributor operating in the light electric vehicle market. The company sells a range of electric bikes through its website, though many of its models were listed as sold out at the time of publication.

According to a filing submitted to the bankruptcy court over the weekend, five separate entities took part in an auction for Rad Power’s assets on January 22. The opening bid was $8 million, with competing parties submitting higher offers throughout the process. Life Electric Vehicles ultimately emerged as the winning bidder. When Rad Power’s outstanding liabilities are included, the total value of the transaction comes to $14.9 million.

Another electric bike company, Retrospec, submitted the second-highest offer at $13 million and has been designated as the backup bidder should the sale to Life EV fail to close. The final bids represent a dramatic drop from Rad Power’s peak valuation of $1.65 billion, which it reached in October 2021, according to PitchBook. The company has raised a total of $329.2 million in funding, according to PitchBook data.

The transaction remains subject to approval by a bankruptcy judge.

Rad Power is one of several micromobility companies that have entered bankruptcy in recent years. Other players in the space, including VanMoof and Cake, have undergone restructuring processes and emerged under new ownership. Scooter startup Bird also previously sought bankruptcy protection.

Life EV has not disclosed its plans for Rad Power following the acquisition. When asked about the company’s intentions, Life EV CEO Robert Provost referred questions back to Rad Power, stating, “There is still a process underway and there is an exciting future being planned for Rad Power.”

TechAmerica.ai was unable to reach Rad Power for comment. The outlet said it would update its reporting if the company responds.

Like many of its peers, Rad Power experienced a surge in demand during the pandemic but struggled once that growth slowed. In recent years, the company implemented multiple rounds of layoffs, cycled through several chief executives, and faced challenges with older battery models linked to fires.

The U.S. Consumer Product Safety Commission identified 31 reported fires connected to those batteries. At the time, Rad Power told TechCrunch that it “firmly stands behind our batteries and our reputation as leaders in the e-bike industry,” adding that it strongly disagreed with the agency’s characterisation of sure batteries as defective or unsafe.