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Ninebot acquires rival Segway, backed by Xiaomi, Sequoia Capital and Shunwei Foundation

Ninebot acquires its rival Segway and raises a USD80 million Series A funding by Xiaomi Technology, Sequoia Capital and Shunwei Foundation.

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In a shocking reveal, Ninebot, a leading China short-distance transportation maker has acquired its US-based rivalĀ Segway, the world's leading personal electric transportation provider. Under terms of the agreement signed in Beijing, Segway will become a wholly-owned subsidiary of Ninebot. The value of the acquisition was not disclosed.

Xiaomi, Ninebot, Segway
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Image credit: Soyacincau

Ninebot and Segway will continue to serve the market through their respective brands and products.

The joint announcement also revealed that three-year old Ninebot has raised USD80 million in Series A funding from leading investors that include Xiaomi Technology, Sequoia Capital and Shunwei Foundation. Xiaomi is reported to have a controlling stake in Ninebot although the size of the holding is unknown.

What's intriguing is that Segway, just six months ago, was in a legal spat with Nintebot for IP infringement. Segway sought an import ban against Ninebot in the US market, last September.

Segway, founded in 2001 by Dean Kamen, has gained cult status with its products but has yet to become profitable. Segway products are used by police, tour groups and in commercial applications. Its steep pricing however, has hampered consumer adoption.

Segway holds more than 400 patents related to transport devices.

Through the strategic alliance, both companies will collaborate in technology and marketing areas to enhance R&D, manufacturing, marketing and sales capabilities.

The short-distance transportation industry is expected to grow and the strategic alliance will enable Ninebot and Segway to apply their technologies into future products including electric driving, mobile internet and man-machine interaction.

With investment by Xiaomi is there a possibility of an affordable Xiaomi personal mobile transport device in the near future?

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By Vernon

Vernon is the founder and chief editor of Vernonchan.com. A graphic designer by profession, he has a deep love for technology, cars, gadgets, food, and travel. He tweets too much and is also known as a caffeine bacterium ("life's too short for bad coffee"). Bleeds Blue (go Chelsea FC!) and considers BMW, Porsche, Alfa Romeo cars to have in the garage--for true petrolheads, that is.