Dixon Motors, parent company of Carnell Motorcycles, has acquired Motorcycle City for £8 million and is predicting the purchase will 'kickstart' the two-wheel market currently worth an estimated £2 billion.

The deal will see the integration of Carnell's 14-strong network with Motorcycle City's 18 predominantly southern sites.

Carnell aims to use its recent experience in the scooter sector in Motorcycle City's key urban locations to maximise on the "massive untapped potential" of the bike market which has increased by 36% since last year.

##Dixon(1)--left## Paul Dixon (left), Dixon Motors' chief executive, said: "This is an unparalleled opportunity to combine the complimentary strengths of two market leaders. We are much better positioned to maximise on the recent boom in scooters.

"Geographically the two businesses are a perfect fit and in terms of aims and aspirations we had the two strongest and most successful teams in the market. The new business should bring positive support for manufacturers and smaller dealers and we'll be finding new ways of working together in the market place to ensure our activities compliment theirs."

The acquisition is being heralded by Dixon as the latest in a series of initiatives supporting their "mobility strategy" to supply transport solutions through the purchasing cycle.

This year Dixon has happened Dixon Distribution, introduced the Real Price List, claiming to be the first car retailer to break free from manufacturers' RRPs, launched jamjar.com with Direct Line and was responsible for the first flotation of the motorcyle dot.com company, BikeNet.

The Motorcycle City sites are in Farnborough, Manchester, Shipley, Tamworth, Bristol, Wells, Newton Abbot, Southampton, Portsmouth, Reading, Paddock Wood and London (Heathrow), Clapham, Battersea, Great Portland Street, Purley, Seven Sisters, London West)