US retailer Allbirds has offloaded its brand and footwear intellectual property (IP) to American Exchange Group (AEG) and WSG Brands, renaming itself Smartbird as it exits retail to pursue AI infrastructure services.
The two acquiring entities — AEG, a fashion accessories designer, manufacturer and distributor; and WSG Brands, a brand management and licensing platform — have taken joint ownership of the Allbirds IP.
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Under the structure, WSG will act as an operating and growth partner while AEG will oversee footwear design and manufacturing.
Their combined focus will be on developing the brand’s core business and exploring new avenues across product categories, retail distribution, licensing, and international expansion.
The completed transaction follows a March agreement under which AEG had agreed to acquire Allbirds’ IP and certain other assets and liabilities for approximately $39m, concluded alongside a consortium of strategic investors, manufacturers, and operating partners.
AEG CEO Alen Mamrout said: “This acquisition represents an exciting milestone for American Exchange Group and reflects our continued focus on partnering with brands that have strong consumer relevance, differentiated positioning, and significant long-term growth potential.”
Smartbird continues to trade on the Nasdaq Global Select Market under the ticker “BIRD”.
To fund its new direction, the company has expanded its convertible financing facility from $50m to $100m.
The renamed company said it is in active discussions with prospective customers and is in the early stages of designing its first cluster deployments.
The Allbirds brand will continue operating under AEG and WSG via an asset-light licensing model, with growth targeted across new product lines, retail channels, and international markets.
WSG has previously applied a similar approach following its acquisition of lifestyle brand Von Dutch.
WSG Brands founder and CEO Jack Cheika said: “The brand has built meaningful awareness and consumer affinity around the world.
“Our vision is to preserve what consumers love about Allbirds while expanding its reach into new categories, markets, and partnerships. Having successfully executed this strategy with Von Dutch, we are excited to begin the next chapter of growth alongside American Exchange Group.”
