FlixMobility acquired Greyhound Lines Inc. from FirstGroup plc. The acquisition marks another important step in FlixMobility’s vision to provide easy-to-use, affordable, and environmentally friendly travel for consumers across the globe, according to the company’s press release.
The purchase brings together FlixBus’ innovative global technology and shared mobility expertise with Greyhound’s iconic nationwide presence and experience, creating a company that will be better able to service the needs of intercity bus travelers in the U.S. The FlixBus Global network serves over 2,500 destinations in 36 countries outside of the U.S. with 400,000 daily connections. Greyhound currently connects approximately 2,400 destinations across North America with nearly 16 million passengers each year.
“Consumers across North America are increasingly seeking affordable, comfortable, smart, and sustainable mobility solutions,” said André Schwämmlein, founder and CEO of FlixMobility. “A compelling offering will draw significantly more travelers away from private cars to shared intercity bus mobility. Together, FlixBus and Greyhound will be better able to meet this increased demand. As our business continues to recover from the effects of the pandemic, we will replicate the success that we have already achieved in 36 countries outside of the U.S. with our innovative and customer centric approach.”
Buses as a sustainable and accessible alternative are now more important than ever. Fluctuations in the cost of gas, the recent escalation of car prices, and climate change concerns have increased the interest of many consumers in finding alternatives to individual car usage. FlixMobility is operating at the forefront of this global mega-trend, and the acquisition of the iconic Greyhound business will help the company realize its vision to offer sustainable and affordable travel to everyone.
FirstGroup reached agreement with Neptune Holding Inc., a corporation 100% controlled by FlixMobility, to sell Greyhound Lines Inc., the U.S. Greyhound operating business, including its vehicle fleet, trademarks, and certain other assets and liabilities, for an enterprise value on a debt-free/cash-free basis of $46 million plus unconditional deferred consideration of $32 million, with an interest rate of 5% per annum.
FlixMobility was started in Germany in 2013 by Jochen Engert, Daniel Krauss, and André Schwämmlein to deliver a revolutionary means of travel that combined technological advances, e-commerce capabilities, and sustainable transportation. Over the past eight years, the company has demonstrated significant success, with FlixBus growing to become Europe’s largest intercity bus network, helping more than 62 million people in 2019 reach their destinations.
FlixBus USA launched in 2018 with destinations across the Southwest, including Los Angeles, Las Vegas, and Phoenix. Since then, the company has expanded its operations to facilitate travel between additional cities in the Southwest, South, Northeast, and Pacific Northwest.