Xiaomi-backed robotics company Ninebot acquires Segway

Segway’s recent exit is just as murky and mysterious as its birth. Today Xiaomi announced that Ninebot, a Chinese robotics company, has purchased the New Hampshire-based scooter company for an undisclosed sum.

In what Ninebot calls a “strategic partnership,” Segway will become a wholly-owned subsidiary of Ninebot, which is concurrently announcing a US$80 million funding round from Xiaomi, Sequoia Capital, Shunwei Capital, and others.

Ninebot co-founder and CEO Gao Lufeng gave the following statement:

This strategic alliance is a milestone for Ninebot and Segway. After establishing the alliance, the company will widely apply a series of technologies into its future products, covering electric driving, mobile internet and man-machine interaction. This combination creates great opportunities for the development of the short-distance transportation industry. We believe that this alliance will promote the short-distance transportation industry to develop and grow on the intelligent mobile robot platform. The alliance of our well-known brands will provide more convenient and environmentally-friendly traveling solutions for customers.

Ninebot, like Segway, sells electric standup scooters. Based in Beijing but registered in the Cayman Islands, the company produces a variety of models including a two-wheeled scooter that resembles the classic Segway, along with a one-wheeled, unicycle-esque model that has no handlebars. Domestically, Ninebot competes with several electric scooter companies like Freego and InMotion.

The Segway is best known in the United States as one of the most over-hyped products of the decade – for better or for worse. Known only as “Ginger” in the years leading up to its 2001 launch, the Segway’s engineers envisioned the scooter as a mass-market vehicle that would revolutionize transportation. But those dreams didn’t quite come to fruition, and the company later targeted warehouse managers, tour guides, and event promoters as its customers.

Segway has gone through several handovers in recent years. In 2009, the company was sold to Jimi Heselden, creator of the HESCO Bastion. Private equity group Summit Strategic Investments later acquired it in 2013.

Somewhat ironically, according to Bloomberg, Ninebot is one of of several companies that Segway founder Dean Kamen accused of infringing on Segway’s patents.

Ninebot might have purchased Segway for its patents, its distribution network, or its branding. But amusing as the acquisition might be for children of the nineties, is likely far less significant than its backing from Xiaomi. The phone maker is investing aggressively in hardware startups. Beyond liquidity, Xiaomi provides these companies with instant scale and distribution by listing their products on its ecommerce site. Hardware companies under Xiaomi’s umbrella include Yeelight, iHealth, Huami (aka Smart Technologies), and Misfit.

Editing by Paul Bischoff, top image by wcamlin