TAIPEI, Taiwan (BRAIN) — Giant Group has agreed to make a $20 million investment in Stages Cycling, acquiring 32.5% of the company's common stock according to a filing with the Taiwan stock exchange.
Stages, based in Portland, Oregon, makes stationary smart bikes for the commercial gym and home markets, crankarm-based power meters, and GPS bike computers. Giant has manufactured some of Stages smart and commercial indoor bikes for several years, and Giant also distributes some Giant-branded Stages GPS computers to its dealers globally.
According to the announcement in Taiwan, on Jan. 20 Giant's board approved the purchase of 32.5% of Stages Cycling Inc. common stock for $6.5 million and Stages Cycling's convertible corporate bonds for $13.5 million. Giant made the investment through its subsidiary Gaiwin US I Investment Inc.
Giant said its strategy is to expand Giant Group's presence within the indoor cycling market and to build Giant's "cycling ecosystem."
"Through the integration of indoor and outdoor cycling products, Giant Group can offer consumers with a more comprehensive cycling experience, enabling consumers to enjoy the benefits and pleasures from outdoors to indoors and vice versa, and hence improving the overall quality of the cycling experience. Through this strategic alliance, Giant Group can further utilize its brand advantage within the professional cycling market and to consolidate both manufacturing and distribution resources to maximize synergies. This, on one hand, increases both product and service values and, on another hand, creates a seamless online and offline cycling ecosystem, thereby accomplishing the goal of future gradual long-term operation performance gains and enabling Giant Group to continue to grow."
A representative from Stages Cycling said they were not able to comment yet.
