SYDNEY, Australia (BRAIN) — BikeExchange, the Australia-based marketplace, has acquired Kitzuma, a bike-shipping service that launched last December.
BikeExchange, whose stock is publicly traded on the Australian stock exchange (ASX:BEX), said it will pay $3.375 million for Kitzuma.
Kitzuma offers "white glove" bike delivery for retailers and for brands including Wahoo, Litespeed, Ventum, Quintana Roo, LeMond, Alchemy and Enve, generally for about $200. Bikes are picked up and delivered fully assembled in Kitzuma's vehicles.
The company's three founders, Taylor Essick, Chris Cosgrove and Tony Eggers, plan to stay with the company, BikeExchange said. Kitzuma is based in Asheville, North Carolina.
According to a BikeExchange release, in Kitzuma's first 10 months in business it was on track to generate more than $1.4 million in annual sales and to deliver 6,200 shipments. The company currently has more than 30 active accounts, it said.
Next year, Kitzuma plans to add a consumer service for cyclists shipping their bikes ahead to a destination for vacations or events.
BiekExchange said Kitzuma offered a complementary service to its North American e-commerce business while adding a projected 2 million Australian dollars ($1.44 million) in revenue to its fiscal 2022 second half.
BikeExchange is completing the acquisition with $2.250 in deferred BEX shares and $1.113 million in cash.
