The merger between Dott and Tier is being supported by many of their existing shareholders, who are providing €60m in equity for the plan.
Two major players in the micromobility market, Tier and Dott, are planning to merge to create one big transport offering in Europe. The deal the two have come to is for the moment a “preliminary agreement” according to Dott’s website.
Dott is headquartered in Amsterdam, while Tier is based in Berlin. Both companies have made considerable gains in the European micromobility market over the past few years, most notably with e-scooters.
People who use either Tier or Dott’s services will still be able to access vehicles through the companies’ respective apps, but there may be “more convergence possible in the future”.
The final closing of the deal is subject to several conditions. Dott expects the transaction to be closed within two months of today’s (10 January) announcement, so things are moving fast.
If the conditions are satisfied, Tier and Dott will become a joint entity, albeit one that will continue to operate under their individual brands. The merger is more about working together as two established brands to continue to corner the lucrative e-scooter market. As it is, Tier and Dott generate combined revenues of €250m across some 20 countries. In 2022, Tier bought Spin from Ford, marking its entrance into the US market.
The deal will be backed by some of Tier and Dott’s current shareholders. It is being led by Mubadala Capital and Sofina, with other backers including Estari, M&G, Prosus Ventures, Novator and White Star Capital. These backers are investing €60m in equity to support the strategy.
Lawrence Leuschner, co-founder and CEO of Tier, said that Tier and Dott are “united by a shared vision of cities with more sustainable transport options and fewer cars”. His Dott counterpart, co-founder and CEO, Henri Moissinac, also spoke of sustainability.
“We are very optimistic about the future of shared micromobility,” he said. “Cities are adapting to reduce car dependency, and encouraging people to make sustainable transport choices. We have built a service that users love, operated in a responsible way.”
Of course, the deal will mainly be about profitability, which both Leuschner and Moissinac acknowledged. The former said he looked forward to “providing a record number of rides in 2024”.
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