Automate MD Eddie Griffin said:
"This is a major development for us and will give us the basis for further expansion into the retail motor accessories market and an introduction into the cycle market.
"We are keen to recover the cycle business in the 11 stores, and introduce our Horsham store to the cycle business."
The twelve stores - Winchester, Aldershot, Farnham, Crawley, Staines, East Sheen, Tonbridge, Eastbourne, Seaford, Brighton, Horsham and Portsmouth - will carry bikes and P&A from Universal and Acorn Sports & Leisure.
“We are looking to build on the existing customer base to increase sales of cycles, and will look at expanding our range further in the New Year," said Griffin.
Forty former Les Smith employees have been offered jobs with Automate, which has been trading since 1982.
Les Smith Motor and Cycle Superstores had 45 stores dotted around southern England.