Giant ends $20 million investment negotiations with Stages Cycling
The two companies break negotiations after a tentative $20 million investment announced earlier this year.
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Earlier this year it was reported by our partner site Bicycle Retailer that the Giant cycling group had made a $20 million investment in Stages Cycling. Investment negotiations have ended, however, as both companies were unable to reach definitive agreements in the deal.
Original reports on a deal between the two companies said that Giant’s board agreed to purchase what amounted to about 32.5 percent of the Stages company stocks.
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Giant’s latest filing says that “the Company and the counterparties are unable to reach mutual consensus on the terms and conditions of definitive agreements, therefore the parties have discontinued the negotiations. The parties have not executed any definitive agreement.”
Why would Giant purchase the US-based Stages Cycling? It comes down to the increasing popularity of indoor cycling. Most are likely familiar with their SB20 smart indoor bike for home and individual usage, but Stages also sells a myriad of indoor bikes for commercial use for gyms, hotels, and more.
Further, the Giant Group has previously partnered to manufacture some of Stages’ indoor bikes. More recently the two companies have worked together to produce the latest 200 series of Stages GPS head units.