Bird, a shared micromobility company has acquired Spin, a competitor owned by Tier, for $19 million. The acquisition includes $10 million in cash, $6 million as a vendor take-back, and $3 million as a hold-back.
Tier had purchased Spin from Ford in March 2022 to expand its presence in the U.S., but it struggled to maintain its lead and reach profitability. Bird’s acquisition of Spin comes as a surprise, considering both companies have faced profitability challenges.
Under the acquisition, Tier will remain a separate entity with its own app. Bird says the transaction is expected to yield over $20 million in synergies and contribute to its earnings growth. The acquisition will expand Bird’s geographic footprint and give it access to Spin’s fleet of over 60,000 vehicles.
Despite Bird’s recent challenges, the acquisition of Spin is expected to help it achieve long-term sustainable profitability. The deal will also enable Bird to expand in cities like Baltimore, Salt Lake City, and Washington D.C.
Bird and Spin have some strategic synergies, including access to newer scooter models with battery swapping capabilities, a technology Bird has been lagging on. Bird plans to maintain Spin’s operating model without significant changes.
This acquisition aims to strengthen Bird’s position in the micromobility market and improve its financial outlook.
