Today, cycling giant SRAM announced it acquired Hammerhead, the company behind the successful Karoo 2 computer.
SRAM’s acquisition of Hammerhead helps the popular computers expand their audience of devotees. Per the agreement, Hammerhead will keep developing the Karoo product line under its brand name. The company’s product output focuses almost exclusively on the Karoo 2.
The two companies finalized the transaction on Dec. 30, 2021. It comes on the heels of a massive growth year for Hammerhead. After the Karoo 2 launched in 2020, it gained immediate traction among some of the world’s best athletes.
Olympic champion triathlete Flora Duffy and Israel’s first professional cycling team are among Hammerhead’s contracts.
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Hammerhead reported it saw a sevenfold revenue increase in 2021, with Karoo 2 users clocking over 1 million hours. As one might expect, SRAM VP of Growth Clint Weber said his company isn’t going to alter its new acquisition methods.
“Hammerhead is an amazing brand with award-winning products, and we do not plan on changing anything about how they innovate,” Weber said in a statement. “We are excited about this acquisition and excited that their team will continue to design, manufacture, and sell technology and quality leading head units that work with every brand of drivetrain.”
The Karoo 2 joins AXS wireless electronic drivetrain components at the top of the SRAM line. Now that they’re under the same roof, the companies hope both technologies will evolve together.
“The brand fit is seamless, and they are driven by the same principles as SRAM, which is innovation that improves the cycling experience. We are excited [for] what the future holds,” said SRAM CEO Ken Lousberg.
Under the agreement, Hammerhead will also maintain its athlete and team roster. Customers, dealers, and distributors will all continue working with the brand through their current channels.
Details of the valuation of the acquisition were not made available.
Ultimately, very little appears to have changed for Hammerhead. At the outset, it looks like SRAM will function as an upgraded marketing vehicle for Karoo head units — the parent company’s social media presence is more extensive than Hammerhead’s by many magnitudes.