Helbiz’s deal to buy Wheels has officially gone through, and with it some promises from the shared micromobility operator to its investors that the tie up will double its annual revenue and help it reach profitability.

Helbiz appears to be using the Wheels acquisition as a lifeline.

However, Wall Street — at least based on the Helbiz share price — isn’t impressed with the company’s promise to deliver “over $25 million in revenue for the full year of 2022,” tap into Wheels’ user base of 5 million riders and expand into new markets like Los Angeles.

Helbiz CFO Giulio Profumo said the combined company expects to achieve positive gross profit margin within the next nine months and to achieve profitability at the operating level within the next 24 months. It seems Helbiz is counting on restructuring to help it reach that target.

“We intend to restructure the combined company to accelerate our path to profitability by a combination of higher margin from the Wheels business, operational savings from redundancies across both companies, and reductions in the cost of revenue,” Profumo said.

Around the time Helbiz signed its intent to acquire Wheels, Wheels furloughed a handful of employees. Since then, the company has laid off many of those employees, according to one source familiar with the matter, but a Helbiz spokesperson told TechCrunch some of the furloughed Wheels employees have been brought back. He also said that nothing has been planned in terms of layoffs yet.

“There are gaps that each company fills in the other and we will use that for efficiency and cost saving,” said Matt Rosenberg, Helbiz’s North America head of communications.

Helbiz’s Wheels acquisition fails to impress investors by Rebecca Bellan originally published on TechCrunch