SRAM Corporation has signed a Letter of Intent to purchase Avid LLC. This acquisition furthers SRAM’s goal of providing a full component group to the bike industry.

SRAM stated in a press release that their, “breadth in global operations will improve capacity, information flow, and service for the Avid product lines. The combination of Avid’s and SRAM’s proven product development will lead to exciting new product lines,” and that the combination of the two companies would make both stronger.

SRAM went on to say that over the last 15 years SRAM has grown to be the second largest component supplier in the industry. “We have grown through our own efforts and the through the integration of three other great companies. These include:

  • Sachs: The inventor of freewheels and internal gear hubs.
  • RockShox: The inventor of mountain bike suspension.
  • Avid: The inventor of adjustable brake levers and leader in disc brake systems.”

SRAM and Avid are currently in the final phase of due diligence, with the closing expected to take place by Jan. 30th. Detailed integration plans with are being formulated with Avid, and will be communicated to the industry at the Taipei show in March.