Bloomberg has reported
that German online retail giant Signa Sports could be considering purchasing Wiggle as part of a larger merger deal with American billionaire Ron Burkle's Yucaipa Acquisition Corp.
Signa Sports operates in a number of sports retail markets and its portfolio includes three cycling-specific websites - ProBikeShop, Bikester and Fahrradd.de. In total, the company operates 80 websites in 17 countries and recorded more than $1 billion of gross merchandise volume from its 4 million active customers last year, according to a recent press release
. If true, the information, which came from unnamed sources, would take Signa Sports public and create a combined entity worth $4 billion.
Wiggle and Chain Reaction Cycles were two UK-based online cycling retailers that merged in 2016
. Then, in 2017, it strengthened its position within the German market by buying Bike 24. The business reported a particularly successful 2020 in which its bike sales doubled and its ebike sales grew by more than 350%.
It's unclear exactly what the deal would mean for Wiggle if it were true and representatives from Wiggle and its private equity owner, Bridgepoint, declined the opportunity to comment on the Bloomberg article. However, it's indicative of a trend of cycling brands being bought out as the industry continues to flourish. Other recent examples include Groupe Bruxelles Lambert taking a majority share in Canyon
and Whyte Bikes securing investment from Cairngorm Capital
A recent report from Cycling Industry News
noted that not only is the cycling industry currently profitable for investors, due to increases in active lifestyles during the COVID-19 pandemic, but it also offers future opportunities around the environment, micromobility and technological integration. The industry has also proven to be resilient in economic downturns, further increasing its value to investors.
We will follow this story as it moves forward and update you if any more information arises.