Private equity biz acquires drivetrain maker enviolo

Electric bike drivetrain specialist enviolo has been acquired by mid-market private equity business Inflexion in a deal said to be worth $245 million.

In the news late last month, enviolo has just moved in to new Amsterdam and Zwolle premises in preparation for the next stage of growth. Transmission products, in the face of global shortages, are in high demand across the industry, so much so that organised crime rings appear to have acknowledged the supply and demand imbalance.

enviolo’s proprietary technology enables cyclists to intuitively adjust the gear ratio, making riding safer and more enjoyable. The drivetrain business has grown rapidly as the market for electric bikes has developed strongly in the past few years.

Particularly successful in European and North American marketplaces, the business benefits from an innovative, IP-rich product portfolio which it provides to leading global and regional bike brands.

Simon Turner, Managing Partner at Inflexion, commented, “The enviolo team has created an innovative product offering which makes cycling more appealing and comfortable to the growing number of cyclists turning to it as a social, healthy activity and an environmentally friendly method of transportation in cities around the world. The team is incredibly driven and we look forward to working with them to grow their excellent business further both in the local Dutch market and internationally.”

David Hancock, CEO of enviolo, said, ” We are proud and excited about our opportunity to work with bike makers to develop great bikes together which can change riders’ lifestyles and ease congestion in urban areas. Our new partnership with Inflexion will help us grow faster as their proximity to our Amsterdam office and presence in the US, China and India are well placed to support our plans. We are greatly looking forward to this exciting new partnership.”

The transaction is subject to customary regulatory clearances and is expected to close by 31st March, 2022.

The cycling industry as a whole has been warming to alternate drivetrain suppliers outside of the “big two” (Shimano and SRAM) in the face of sourcing pressures. To find out more about the big winners of the race to source components head here.