Micromobility companies Tier and Dott plan to join forces in a deal backed by €60 million from existing investors.
The transaction, which is subject to a number of conditions, will form “Europe’s leading micromobility operator,” according to a statement.
The investment is led by Mubadala Capital and Fina and also includes Estari, M&G, Prosus Ventures, Novator and White Star Capital.
Tier and Dott generate combined revenues of €250 million and have a presence in major European cities including London, Madrid, Paris and Rome as well as Dubai and Tel Aviv.
Tier announced $200 million in Series D funding in late 2021, bringing its total to $660 million at the time. Meanwhile, Dott added $70 million in funding in early 2022, which brought its Series B round to more than $150 million.
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Tier has made a number of acquisitions in recent years: Italy’s Vento Mobility, German bike share provider Nextbike and Hungary-based software development company Makery.
In March 2022 it acquired United States-based electric bike and scooter company Spin only to sell it to U.S.-based Bird last year.
Both the Tier and Dott brands will remain with the company to be headquartered in Berlin. Tier’s co-founder and CEO Lawrence Leuschner will become chairman, while Dott’s co-founder and CEO Henri Moissinac will be CEO of the joint entity.
“I am delighted to join forces with Dott, further strengthening our position as the European micromobility champion and marking the next phase in the development of the industry," Leuschner said. "We are united by a shared vision of cities with more sustainable transport options and fewer cars, and we are committed to helping users and cities make this a reality. With an expanded footprint and combined expertise, I look forward to providing a record number of rides in 2024.”
Moissinac said he was optimistic about the future of shared micromobility.
"Cities are adapting to reduce car dependency, and encouraging people to make sustainable transport choices," he said. "We have built a service that users love, operated in a responsible way. By bringing Tier and Dott together, we are well positioned to capture the next phase of growth and further accelerate our path to profitability. We are creating the European champion that will provide the best experience to our users, carefully integrated into the cities we operate in.”
The micromobility landscape has had a challenging time in recent months with Bird filing for Chapter 11 bankruptcy late last year. Around the same time, Micromobility.com, another company offering scooters and e-bikes, had trading on the Nasdaq suspended.
The Dott-Tier transaction is likely to be completed at the beginning of March.