FlixMobility acquires Greyhound to Expand U.S. Intercity Bus Services (2024)

Summary

Dallas/NewYork, (October 21, 2021)–FlixMobility(“the Company”), global mobility provider of the FlixBus andFlixTrainbrands, announced today it has acquired Greyhound Lines, Inc. (“Greyhound”), the largest provider of long-distance bus transportation in the United States, from FirstGroup plc. This acquisition marks another important step inFlixMobility’svision to provide easy-to-use, affordable, and environmentally friendly travel for consumers across the globe.

The purchasebrings together FlixBus’ innovative global technology andsharedmobility 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. Intercity bus lines were a lifeline during the pandemic for communities and essential workers, and as economies re-open, they will be a tremendous driver for sustainable growth across the country. The FlixBus Global network serves over 2,500 destinations in 36 countries outsideof theUS with 400,000 daily connections. Greyhound currently connects approximately 2,400 destinations across North America with nearly 16 million passengers each year.

André Schwämmlein, Founder and Chief Executive Officer ofFlixMobility, said, “Consumers across North America are increasingly seeking affordable, comfortable, smart and sustainable mobility solutions. 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.FlixMobilityis 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.

Jochen Engert,Founder and Chief Executive Officer ofFlixMobility, commented, “The continuous expansion of our services through partnerships and acquisitions has always been an integral part of our growth strategy to build our global presence. The acquisition of Greyhound is a major step forward in the US. The FlixBus and Greyhound teams share a common vision to make smart, affordable and sustainable mobility accessible to all."

David Martin, Executive Chairman, FirstGroup plc said:“The sale of Greyhound toFlixMobilityis part of our portfolio rationalization strategy to refocus FirstGroup on its leading UK public transport businesses. Thestrength of Greyhound is its people, and I would like to thank them for their unwavering commitment to their customers and communities. As part ofFlixMobility, I am confident that Greyhound will be well placed to continue to grow and develop their iconic services for many years to come.”

FirstGroup has reached agreement with Neptune Holding Inc. (the 'Buyer'), a corporation 100% controlled byFlixMobility, to sell Greyhound Lines, Inc., the US 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 c.$46m plus unconditional deferred consideration of $32m with an interest rate of 5% per annum.For more information seewww.firstgroup.com.

FlixMobilitywas started in Germany in 2013by Jochen Engert, Daniel Krauss and André Schwämmleinto deliver a revolutionary means oftravelthat combinedtechnological advances, e-commercecapabilities,andsustainable transportation.Over the past eight years, the company has demonstrated significant success, with FlixBus growing to becomeEurope’s largest intercity bus network, helping more than62million peoplein 2019reach their destinations.

FlixBus USA launched in 2018 with destinations across the Southwest, including Los Angeles, CA, Las Vegas, NV, and Phoenix, AZ. Since then, the Company has expanded its operations to facilitate travel between additional cities in the Southwest, South, Northeast and Pacific Northwest.

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