Google acquires Fitbit in a $2.1 billion cash deal
The rumors turn out to be true. Google has finally confirmed its Fitbit acquisition. The deal values at $7.35 per share making it the whole deal valued at around $2.1 billion.
Google has confirmed plans to introduce Made by Google wearable devices into the market.
The Fitbit team will be joining Google. In a press release issued by Fitbit, the company confirmed that it will still take privacy seriously. Fitbit health and wellness data will not be used for Google ads.
This deal makes sense because Google has been working hard to make an impact in the wearable segment via its Wear OS platform. Now with Fitbit, it can actually jump into wearable hardware business without building from scratch.
Fitbit’s hardware and Google’s software will make an impressive match. Fitbit’s fitness tracking will be integrated into Google’s existing Google Fit app and Google will now try to make a solid Apple Watch alternative.
The deal is expected to close sometime in 2020 after standard regulatory and stockholder approval.
This is not the first time when Google has acquired something in the wearable segment. Earlier this year, it also purchased smartwatch related technologies from Fossil Group for $40 million.
Google’s Fitbit acquisition is the company’s 5th largest acquisition till date after Motorola ($12.5 billion), Nest ($3.2 billion), Adsense ($3.1 billion), and Looker ($2.6 billion).