Giant Bicycles Officially Acquires Stages Cycling for $20.1 Million

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Giant Bicycles has acquired Stages Cycling from Foundation Fitness. The purchase follows Stages filing for bankruptcy in June 2024. Giant and Stages have long been tied together, with Giant most recently suing Stages for $14 million in June 2024.

The purchase has been a rocky one, as the acquisition faced opposition from several groups, including creditors and an inventor involved in a patent dispute with Stages. In April 2024, Stages laid off all of its employees, with several finding their way to Giant after the fact.

Giant attempted to buy a minority 32.5 percent stake in Stages in 2023 before breaking its negotiations just five months later.

This latest acquisition will bring the two brands together under Giant’s SPIA Cycling subsidiary.

Giant, which has long manufactured products for Stages, agreed to drop its Oregon lawsuit that sought over $14 million in unpaid invoices. The agreement includes a $500,000 payment to Norwegian software companies TekSport AS and VismoX AS.

Giant’s offer was approved after no competing bids emerged. Giant had previously attempted to invest in Stages in 2022, but negotiations failed. However, discussions resumed until early this year, when Stages opted for another acquirer.

In bankruptcy filings, unsecured creditors and inventor Scott Radow of POWERbahn raised objections. Radow, involved in a separate patent dispute, claimed Stages’ assets could not be sold without addressing his patent rights. Despite these objections, the bankruptcy court approved the sale on September 12, though it’s unclear how Radow’s concerns were resolved.

Foundation Fitness remains in Chapter 11, with substantial debts to Union Bank & Trust and other creditors from the fitness and bike industries.

What does this mean for your Stages power meter?

Giant’s acquisition of Stages could bode well for future support of its power meters, indoor bikes, and other gear. What exactly that support looks like, however, is far from clear.

“We are thrilled to integrate Stages Cycling’s assets into our organization,” said Donald Yu, president of SPIA Cycling in a press release. “This acquisition aligns with our strategic goals and enhances our capabilities in both indoor and outdoor cycling.”

The acquisition includes Stages’ intellectual property, manufacturing facilities, product lines, and limited inventory. Giant aims to use these assets to strengthen its position in the indoor and outdoor cycling markets, while also entering the commercial fitness sector, where it has significant experience.

Paddy Murray, VP of global sales and marketing at SPIA Cycling, expressed excitement about the acquisition, emphasizing a “seamless transition” for Stages’ customers.

Giant Bicycles has a good history of supporting its product in the long term, and we hope that continues here for everyone with gear from Stages.

This story first appeared on Bicycle Retailer & Industry News.