SRAM has announced it has acquired Hammerhead, the maker of the Karoo 2 GPS cycling computer. Hammerhead will slot into SRAM’s portfolio and continue to make its flagship Karoo products.
SRAM reassured consumers that Hammerhead devices will remain compatible with all drivetrain types – including Di2 electronic groupsets from rival manufacturer, Shimano – and warranties will be unaffected.
The privately owned American company has been on a spending spree in recent years, acquiring clipless pedal manufacturer Time in 2021 and power meter maker PowerTap in 2019. This latest purchase marks a new path for the brand into the tech sector. The Shimano rival already owns RockShox (suspension), Zipp (finishing kit), Truvativ (cranksets) and Quarq (power meters).
Chris Froome will likely be among Hammerhead investors to make a windfall from the transaction, which went through on 30 December 2021.
Hammerhead claims to have raised $14 million from investors since 2014. Now the brand has far more financial clout to fund innovation to take on the market leaders Garmin and Wahoo.
Garmin, the manufacturer of Fenix smartwatches, turned over more than $4 billion in 2020, with its outdoor and fitness divisions contributing half. Wahoo Fitness’ revenue was estimated at $30 million last year.
The Karoo 2 was launched in 2020 and Hammerhead signed a partnership with Froome’s now Israel-Premier Tech for the 2021 season. This saw the computer on the bars of Dan Martin and André Greipel in their final seasons before retirement.
It seems the two-year renewal the WorldTour outfit announced in November 2021 will be honoured. SRAM mentioned Hammerhead will "continue with their athlete and team roster".
SRAM gave Hammerhead’s claimed sevenfold year-on-year revenue growth and opportunities for innovation as reasons for its purchase.
