Rad Power Bikes has agreed to sell its business to Life Electric Vehicles Holdings for about $13.2 million, according to bankruptcy filings, just over a month after entering Chapter 11 proceedings.
Court documents show that five parties participated in an auction for Rad Power’s assets on Jan. 22. The opening bid was $8 million, with subsequent bids increasing until Life Electric Vehicles was selected as the highest bidder. Including assumed liabilities, the total value of the transaction is about $14.9 million, the filing said.
Another e-bike manufacturer, Retrospec, submitted the second-highest bid at $13 million and has been designated as the backup bidder should the Life Electric Vehicles transaction fail to close.
The agreed price represents a sharp decline from Rad Power’s peak valuation of $1.65 billion in October 2021, according to data from PitchBook. Rad Power has raised a total of about $329.2 million from investors, PitchBook data shows.
The acquisition remains subject to approval by the bankruptcy court.
Life Electric Vehicles, based in Florida, describes itself as a developer, manufacturer and distributor of light electric vehicles. The company lists several electric bikes on its website, though many models were marked as sold out at the time of publication.
Rad Power is among several micromobility companies that have sought bankruptcy protection in recent years amid a slowdown in demand and tighter funding conditions. Other companies in the sector, including VanMoof and Cake, have undergone restructurings and changed ownership, while scooter operator Bird has also gone through bankruptcy.
Life Electric Vehicles Chief Executive Robert Provost declined to comment on post-acquisition plans for Rad Power, citing the ongoing process. “There is still a process underway and there is an exciting future being planned for Rad Power,” he said in a message.