Bird acquires rival Spin in $19M deal

The micromobility landscape has taken an interesting turn as Bird, struggling with a -$1.8M negative free cash flow in Q2, procures its rival Spin, from Tier in a $19M deal.

This transaction consists of:

• Payment: Bird shelled out $10M in cash, along with a $6M vendor take back, with an additional $3M holdback.

• Context: Previously, Spin was acquired by Tier from Ford to strengthen its presence in the U.S. market.

• Challenges: Tier had been facing some difficulties, resorting to a convertible note round while seeking prospective purchasers.

• Synergies: Bird remains optimistic that the deal could potentially bring about $20M in synergies and boost earnings by enhancing operational efficiency.

• Future of Tier: Tier will persist as an independent entity, maintaining its dedicated app. Tier employees were informed that the major change will be the shift of Spin under Bird Rides Inc.

• Geographical Expansion: Despite Bird's recent withdrawal from several U.S. cities, this deal expands Bird's geographical footprint potentially aiding expansion in cities like Baltimore, Salt Lake City, and Washington D.C.

• Assets: Bird now commands Spin's fleet of over 60,000 vehicles, many equipped with battery swapping and Drover AI's sidewalk detection technologies.

• Stability: Moving forward, there are no immediate plans to alter Spin’s operational model and Tier employees received assurances of no significant personnel decisions or market closures in the near future.

Bird's Interim CEO, Michael Washinushi, who took over from Shane Torchiana, stated, "Spin is a great financial and strategic acquisition for Bird... the company now holds a leading market share position in key markets, more new vehicles, cutting-edge technology and a significantly stronger financial position.”