Tier Mobility has acquired Nextbike for an undisclosed sum to help boost its combined coverage across Europe to 400 cities and a fleet of 250,000 vehicles.
Tier said the deal creates a “truly multi-modal platform across bikes, e-bikes, cargo bikes, e-scooters and e-mopeds”.
The business was recently bolstered by a Series D financing round that equipped Tier with $200 million (£149m) of investment.
Nextbike has been operating bike rental systems since 2004, mostly as the exclusive operator for cities.
Lawrence Leuschner, chief executive and co-founder of Tier, said: "The acquisition of Nextbike is a unique opportunity to take bikeshare to the next level, getting more people out of cars and offering the most sustainable mobility solution.
“I have always held a deep belief in the transformative power of bikes in cities - and it is great to see the bike market is growing rapidly.
“Our shared values of sustainability and respect for cities across two strong leadership teams, underpinned by Tier's financial backing and capital efficiency, present an unstoppable, joint mission to change mobility for good."
Leonhard von Harrach, Nextbike chief executive, said the business decided to partner with Tier due to both companies having “significant common ground in corporate culture”.
Above all, however, he said both businesses are united in their mission to make cities more liveable and to do something about traffic congestion, pollution and noise.
The major investment in bikeshare follows Tier committing heavily to e-bikes in recent months, with launches in London and Stockholm part of an expansion of its e-bike service across six countries.
Nextbike saw a 50% increase in usage since the Covid-19 pandemic.
In total, 60 projects across 17 countries were supplied with new bikes in the last 18 months.