“Merger of Tier and Dott: A Response to Unfounded Speculation”

Deal Dive: Tier and Dott’s merger is not a sign of what’s to come in M&A this year Consolidation can be complicatedEarlier this week, European micromobility companies Tier and Dott said they had agreed to merge. The companies hope they can become profitable if they work together, my colleague Romain reported. This seems like a solid outcome for the two startups, since they likely weren’t going to reach IPO scale on their own. After all, if the companies weren’t going to survive as solo entities, it makes sense to at least try another direction. Last year I came up with a hypothesis about M&A in 2024; I was inspired by Getir acquiring FreshDirect to fill a gap it needed to potentially reach profitability.

Deal Dive: Tier and Dott’s Merger – A Complex Conundrum

Earlier this week, European micromobility companies Tier and Dott announced their agreement to merge. The companies, which specialize in on-demand rental of scooters and bikes, also revealed their plans to raise €60 million from existing investors and aim to finalize the deal in a mere two months. My colleague Romain reported that the companies have high hopes that collaboration will lead to profitability.

“This seems like a solid outcome for the two startups. It is highly unlikely that they would have attained IPO scale independently. In such circumstances, it is prudent to try a different approach,” stated Romain.

Last year, I formulated a theory about the M&A landscape for 2024, inspired by Getir’s acquisition of FreshDirect, for the purpose of bolstering its potential to achieve profitability. Although FreshDirect is not a startup, my conviction was that this year would witness a significant consolidation of startups that realized the advantages of joining forces with a kin startup: facilitating the achievement of scale and enhancing the appeal to potential buyers.

When I consulted some mergers and acquisitions lawyers to check if my hypothesis was consistent with their observations, they envisaged a rise in M&A undertakings in 2021. However, they were of the view that deals like the Tier and Dott merger would be few and far between.

Avatar photo
Ava Patel

Ava Patel is a cultural critic and commentator with a focus on literature and the arts. She is known for her thought-provoking essays and reviews, and has a talent for bringing new and diverse voices to the forefront of the cultural conversation.

Articles: 637

Leave a Reply

Your email address will not be published. Required fields are marked *