Top 10 Questions About The Ninebot/Segway Merger
On April 15, Ninebot announced its strategic merger with Segway. Click here to view the news release in its entirety. The worldwide market’s reaction to this news has been incredibly positive, but has also raised several great questions. Here are the answers:
Q1: What are the most significant benefits of this merger to Segway?
A: Without question the most notable benefits are:
- Improved access and increased penetration in the Chinese market, the world’s second largest economy
- The ability to leverage Ninebot’s (as well as its investors) relationships with Asian suppliers
- Immediate expansion of Segway’s commercial product offerings to a more balanced portfolio that also features consumer products at considerably lower price points
Q2: What are the most significant benefits of this merger to Ninebot?
A: Ninebot will gain a great deal from this merger including:
- Exclusive rights to Segway products that are covered by over 400 patents around the world
- Exclusive use of the iconic and internationally recognized Segway brand
- Access to a robust distribution channel in the Americas, Europe, Middle East and Africa
Q3: What was the reaction of Segway employees to the merger announcement?
A: The biggest fans of Segway products are Segway employees. Our community is excited about the opportunities for growth that this merger presents.
Q4: Will Segway’s management of day-to-day business change in the short-term?
A: No, it won’t. As a wholly owned subsidiary, Segway will continue with business as usual.
Q5: Will Segway’s Engineering team remain intact, reside in Bedford, NH and be responsible for product quality?
A: Absolutely – on all three fronts. Quality is a cornerstone of Segway’s brand and Ninebot is very interested in maintaining the “Made in America” status of Segway products.
Q6: Will product manufacturing remain in Bedford, NH?
A: Yes. Product manufacturing will remain in Bedford for the foreseeable future. Again, Ninebot appreciates the value being a “Made in America” product provides.
Q7: What, if any, changes can Segway’s worldwide distribution expect?
A: As a wholly-owned subsidiary of Ninebot, Segway will run accordingly and independently. The initial reaction of the channel to this news has been overwhelmingly positive and an in-depth review of the two companies’ product lines, target markets and customer purchase preferences is well underway. Ninebot is interested in growing the company and our channel supports that.
Q8: Will Segway now offer a low cost PT sooner than was originally planned?
A: Potentially, yes – Ninebot is in the process of evaluating the entire product line. Clearly our products are complementary and the team will be making decisions soon on how best to maintain and grow our product portfolio and bring new products to market.
Q9: Will Segway continue to offer its three-wheel product for the public safety market?
A: Yes. Segway’s SE-3 Patroller has been embraced by law enforcement and private security firms and will continue to be available.
Q10: Will the Ninebot and Segway brands be integrated or kept completely separate?
A: The branding strategy is taking shape. However, at this time we expect the brands to remain separate.