ZAP Acquires Electric Motorcycle Company
10 October 2000
SEBASTOPOL, Calif. - Northern California electric vehicle manufacturer ZAPWORLD.COM announced today it has completed the acquisition of Electric Motorbike Inc. (EMB) of Sebastopol, Calif., a developer of one of the world's only electric motorcycles.
Under terms of the agreement, ZAPWORLD.COM acquires all assets, technology, engineering capabilities and customer contacts from EMB for 140,000 shares of ZAP stock and $100,000 cash. The technology consists of all proprietary components and designs for the LECTRA motorcycle and its proprietary VR24 drive system.
As part of the agreement, ZAP acquires the engineering team that developed the LECTRA, including EMB founder Scott Cronk, who will take on the role as Chief Engineer for ZAP. Cronk, 36, spent 12 years working for General Motors in various engineering and management positions. First developed by EMB in 1996, the LECTRA is believed to be one of the world's only production-ready electric motorcycles. Over 100 have been delivered and ZAP plans to reintroduce a new LECTRA design in 2001.
"This acquisition underscores our belief that the market for light electric transportation is ready to take off," said ZAP Chief Executive Officer Gary Starr. "With this world-class motorcycle design and the engineering ability that Scott Cronk brings to ZAP, we plan to accelerate the development of electric motorbikes, scooters and motorcycles."
EMB is the fourth electric vehicle company acquired by ZAP in the past 12 months. In December, ZAP acquired emPower Corp., a Massachusetts scooter company founded by MIT graduates. In February, ZAP acquired Electric Vehicle Systems, developer of a new form of power skating called the PowerSki. In June, ZAP acquired Aquatic Propulsion Technologies, a maker of electric sea scooters.
ZAP builds and distributes many styles of electric vehicles, including bicycles, pedicabs, go-karts, neighborhood cars and more.
