In a recent development, Ninebot Inc., which specializes in segway production announced it has acquired US rival Segway Inc, the company behind the self-balancing scooter that became a technological marvel when it was launched in the early 2000s.
In a press conference held in Beijing recently, Ninebot Chief Executive Gao Lufeng also confirmed that Chinese smartphone maker Xiaomi and venture capital firm Sequoia Capital China are among others who are a part of acquisition, and jointly they had invested $80 million into Ninebot to help finance the acquisition.
From now on, Segway becomes a subsidiary of Ninebot. Co-founder and CEO Ninebot Gao Lufyn, called it a "strategic partnership" and explained that: "The alliance of such famous brands provides more convenient and ecological solutions for customers and their personal transportation."
Companies also plan to collaborate in researches, production and marketing.
Xiaomi, Sequoia Capital and Shunwei are interested in developing innovative technologies for outdoor enthusiasts.
Meanwhile, Xiaomi and Shunwei are parts of a group of companies founded by Lei Jun, one of the world's richest investors with capital valued by Forbes at $ 13.6 billion.
As per Reuters report, Lei was reported saying that Xiaomi's investment in Ninebot made sense for the smartphone company because Xiaomi's strategy was to support smart hardware companies everywhere and build a device ecosystem around its smartphones.