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by Shane Stokes
October 24, 2017
Dylan Groenewegen wins stage 5 of the Tour of Guangxi, Tim Wellens holds overall lead; Malseed celebrating Subaru National Road Series triumph; Pooley completes Taiwan KOM Challenge double, Nibali wins men’s race; Dutch Sprinter Kirsten Wild Signs with Wiggle High5; Concussion foils Bahrain-Merida’s ambitions in Tour of Guangxi; Wiggle moves to further constrict online market with purchase of rival; Video: Velon’s view of stage 5 of the Tour of Guangxi; Video: Worldcup cyclocross Koksijde 2017; Video: Taking a ride with one of Colombia’s top cyclists
Having bought competitor Chain Reaction Cycles in 2016, the online cycling retailer WiggleCRC is set to purchase German rival Bike24. According to the Sunday Times, the company is in advanced talks and could be close to a deal.
It said that the private equity firm behind Wiggle, Bridgepoint, is prepared to pay over £100m to close the sale. Bike24 trades mainly in Germany, Austria and Switzerland. It is predicted that a purchase of that company would boost Wiggle’s profits by €85m.
According to BikeBiz, both companies announced the move on Monday. “The acquisition of Bike24 is an important step in the group’s broader strategy of creating a global ecommerce champion in the growing cycling and tri-sports markets,” said Wiggle CRC chairman Brian McBride. “The combined business will have pro forma revenues of circa £500m and a more diversified income stream, with international sales increasing from 52 percent of group currently, to circa 60 percent.”
Bike24 CEO’s Andrés Martin-Birner said the move would be good for the company. “In WiggleCRC we have found a partner who will add support to our ambitious growth plans and protect the brand and the culture of Bike24. We will share knowledge, our passion for cycling and tri-sports and together we will approach the future with confidence.”
It remains to be seen if the EU would object to the purchase. Wiggle’s purchase of Chain Reaction Cycles merged two of the biggest players in the UK online market, and Bike24’s acquisition further constricts competition. BikeBiz suggests the purchase is partially insurance against a Brexit-caused downturn in the UK.
Click through to read more at BikeBiz.