Alphabet, Google’s parent company is to acquire Fitbit, a wearables company in a deal valued at approximately $2.1 billion. The deal is confirmed and Google will pay $7.35 per share in an all-cash deal.
The acquisition would put Google in the direct competition of Apple with its Series 4 Apple watch that is class 2 medical device approved by the FDA. As the wearable market is still a growing market, Google has its own plan to create disruption with this takeover.
With respect to the deal, Rick Osterloh, senior vice president, devices & services at Google, said to the famous news agency “Fitbit has been a true pioneer in the industry and has created terrific products, experiences and a vibrant community of users. We’re looking forward to working with the incredible talent at Fitbit, and bringing together the best hardware, software and AI, to build wearables to help even more people around the world.”
James Park, co-founder and CEO of Fitbit, said in a press release. “More than 12 years ago, we set an audacious company vision – to make everyone in the world healthier. Today, I’m incredibly proud of what we’ve achieved towards reaching that goal. We have built a trusted brand that supports more than 28 million active users around the globe who rely on our products to live a healthier, more active life.”
He added, “Google is an ideal partner to advance our mission. 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. I could not be more excited for what lies ahead.”