Motorcycle City has been acquired by Dixon Motors, parent company of Carnell Motorcycles, creating the biggest motorcycle operation in the country.

The £8 million acquisition, which brings together the two biggest players in the retail motorcycle business, is predicted to be the catalyst needed to kickstart the two-wheel market, currently worth an estimated £2 billion and retailing 170,000 machines each year.

The acquisition will deliver a strong nationwide retail footprint integrating Carnell's 14-strong network with Motorcycle City's 18 predominantly southern sites, including Southampton, without any territorial duplication.

Carnell says it aims to inject innovation and recent experience in scooters into Motorcycle City's key urban locations to maximise on what it believes to be massive untapped potential.

Paul Dixon, chief executive for Dixon Motors, 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, we have an unrivalled clothing offer throughout all our stores, and have an improved ability to further secure the lowest cost base in distribution, marketing, administration and procurement."