Alphabet Inc’s search giant, Google Inc., said it will acquire a technology wearable startup, Fitbit Inc.
The transaction value of the acquisition which is about $2.1 will see Google take on Apple and Samsung in a competitive and evolving wearable technology business.
“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,” said James Park, co-founder and CEO of Fitbit. “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.”
“Fitbit has been a true pioneer in the industry and has created terrific products, experiences and a vibrant community of users,” said Rick Osterloh, Senior Vice President, Devices & Services at Google. “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.”
The deal which was advised by Qatalyst Partners LLP and it is expected to close by 2020 offered Fitbit $7.35 per share in cash, a premium of about 19% to the stock’s closing price on Thursday.
According to data from IDC, Xiaomi dominates the global wearables market, with a 17.3% market share in the second quarter of 2019, followed by Apple. The research company said Fitbit owns 10% of the market.