Xiaomi-backed Ninebot buys US rival Segway that once accused it of IP theft

Chinese company Ninebot, backed by Xiaomi and other venture capital firms, has acquired its US rival Segway, the companies announced this week.

The three-year-old Beijing-based start-up did not disclose the amount of the acquisition, but said that it received US$80 million in funding from sources including Sequoia Capital and Xiaomi boss Lei Jun's personal private equity fund Shunwei.

Ninebot makes two-wheeled electric vehicles, designed for standing riders, that resemble Segways.

The acquisition comes about half a year after Segway named Ninebot in a patent infringement complaint in September 2014 and sought an import ban against the company in the US.

Gao Lufeng, Ninebot's chief executive, did not address the dispute on Wednesday but told reporters the combined company would hold a significant lead in market share as well as a vast portfolio of over 400 critical patents.

Sequoia Capital China partner Neil Shen said Ninebot generated more sales last year than Segway had since its launch, signifying the buyout was not chiefly aimed at absorbing Segway's revenue.

"With the two brands together we will have a lot of resources," Gao told reporters at an event in Beijng, adding that the companies would operate as separate brands.