Google to acquire Fitbit
Google on Friday confirmed that it is acquiring Fitbit, the fitness-based wearables giant which has become a household name across the globe. Google has confirmed acquiring FitBit in a statement issued by Google's Senior Vice President Rick Osterloh. In a statement issued on Google Blog post, Osterloh said both companies have entered "a definitive agreement" that will enable Google to acquire Fitbit.
"Today, we’re announcing that Google has entered into a definitive agreement to acquire Fitbit, a leading wearables brand. We believe technology is at its best when it can fade into the background, assisting you throughout your day whenever you need it. Wearable devices, like smartwatches and fitness trackers, do just that—you can easily see where your next meeting is with just a glance of an eye or monitor your daily activity right from your wrist," Google's Senior Vice President's statement read.
Fitbit is a pioneer in wearable technology, but it's been shredded by that competition. The company's market capitalization soared to just under 10 billion US dollars after becoming a public company in 2015. Its value this week is well below 2 billion US dollars.
Google-Fitbit deal is worth USD 2.1 billion.
Google's parent company Alphabet said it will pay 7.35 US dollars per share for the company, which were trading at 7.20 US dollars each after the deal was announced.
"With Google's resources and global platform, Fitbit will be able to accelerate innovation in the wearables category, scale faster, and make health even more accessible to everyone," Fitbit co-founder and CEO James Park said in a statement.
"Over the years, Google has made progress with partners in this space with Wear OS and Google Fit, but we see an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market. Fitbit has been a true pioneer in the industry and has created engaging products, experiences and a vibrant community of users. By working closely with Fitbit’s team of experts, and bringing together the best AI, software and hardware, we can help spur innovation in wearables and build products to benefit even more people around the world," said Google's VP Rick Osterloh.
Fitbit has 28 million active users worldwide and has sold more than 100 million devices. The company said that its privacy and security guidelines won't change and that it will continue to be transparent about the data it collects and why. Fitbit said that it never sells personal information and that its health and wellness data will not be used for Google ads.
The deal is expected to close next year if approved by regulators and Fitbit shareholders.
(With inputs from AP)
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