Why This Chinese Startup Bought Segway
Segway does China
Two companies have sealed a deal that’s raising eyebrows: Segway, the struggling American maker of disgraced self-balancing scooters, has been bought by Ninebot, the Chinese rival that Segway recently accused of copying its signature two-wheelers.
Ninebot announced the curious acquisition for an undisclosed sum on Wednesday, which followed a combined $80 million investment from mega-rich Chinese smartphone company Xiaomi, investment firm Sequoia Capital and other backers. The two electric scooter makers will still operate as separate brands with their own products, but will unite under a “strategic alliance” to develop smarter, greener short-distance transportation vehicles.
The deal comes as a bit of a surprise given the companies’ history. Just seven months ago, Segway filed a trade complaint accusing Ninebot and other Chinese companies of violating its patents. Their products indeed resemble one another, but Ninebot has insisted it “independently owns its intellectual property.”
