Google acquires Fitbit in $2.1 billion deal
The acquisition is reportedly aimed at giving Google a place in the wearables market with its Wear OS platform, in an attempt to take on competitors such as Apple
According to reports, Internet giant Google will acquire fitness tracking company, Fitbit in a deal valued at around $2.1 billion. As part of the deal, it is believed that Google will pay $7.35 per share in cash and Fitbit will come wholly under Google. The acquisition is reportedly aimed at giving Google a place in the wearables market with its Wear OS platform, in an attempt to take on competitors such as Apple.
Following reports that Google's parent company, Alphabet had made an offer, Fitbit's stock had climbed as much as 30 per cent earlier this week. The deal is expected to be finalised in 2020.
According to reports, Google Senior Vice President of Devices & Services, Rick Osterloh said in a blog that the Fitbit acquisition is “an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market.”
The move also comes after Google announced a $40 million deal to buy of Fossil’s smartwatch technology in January. Fossil was already making smartwatches on Google’s Wear OS.
