After rumors swirled earlier this week about a deal, Google and Fitbit have now announced that the search giant is indeed buying the health wearable maker. In a press release announcing the deal, Fitbit said that Google is acquiring the company for $7.35 per share in cash–which is about $2.1 billion dollars.
Fitbit is one of the most popular health wearable makers out there–and was also one of the first. However, the company has lately stood in the shadow of Apple and its Apple Watch, which, according to Apple’s latest numbers, is seeing tremendous YOY growth.
With Google’s acquisition of Fitbit, the brand’s devices will probably be better able to compete with the likes of the Apple Watch due to all the R&D cash Google has available to throw at the maker. That’s not to mention that by acquiring Fitbit, Google is going to get a massive leg up in the expanding health wearables market and can leverage its popular software services and wealth of data to make Fitbit devices that may be better able to compete with the Apple Watch.
In a statement announcing the deal James Park, cofounder and CEO of Fitbit, said:
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. 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.
The deal is pending due to the approval of shareholders and regulators, but if everything goes smoothly, Fitbit says the sale will complete sometime in 2020.