Fitbit, Inc. is an American company’s main building in San Francisco, California. Its products are activity trackers, wireless-enabled wearable technology devices that measure data such as the number of steps walked, heart rate, measuring sleep parameter, steps climbed, and other personal metrics involved in fitness. Google’s Rick Osterloh has confirmed in the official company blog that the purchase of Fitbit is formally sealed. Osterloh does not give any details about the closing conditions, above all the agreed purchase price. Google sees the acquisition as an opportunity to invest more in Wear OS, the manager said. Fitbit has issued its own press release, which will be more specific. Afterward, Google Fitbit shareholders will pay $ 7.35 per share, which would ultimately equal an enterprise value of approximately $ 2.1 billion. The acquisition is subject to the approval of shareholders and regulators and is expected to be completed over the coming year.
Rumors of a possible sale had been going around for several months. Thus, Fitbit no longer found itself in a position to defy the increasing competition from the Far East with its cheaper, but not outright worse products. Recently, Reuters learned that Google’s parent company, Alphabet, is said to have made a takeover bid.
Google really wants to prove itself in the smartwatch sector. The now confirmed purchase of the manufacturer of smartwatches and fitness trackers is unlikely to be interpreted differently. By January 2019, Google had purchased Smartwatch technology from Fossil and paid $ 40 million for it. Fitbit, for its part, had bought smartwatch pioneer Pebble, whose patents now also go to Google.
In the past few years, Fitbit has increasingly oriented itself towards smartwatches and launched the Versa line, a model series that scored points with its intelligent functions and Apple Watch optics. Critics were able to convince the devices because of their good price-performance ratio for the most part, but at the till that was not reflected in sales. Even the recently launched Versa 2 is said to have far from Fitbit’s expectations. After all, Fitbit claims to have an active community of around 28 million users and can look back on over 100 million units sold.
The takeover announcement suggests that Google Fitbit does not just continue to operate. After all, there’s the talk of the opportunity to invest in Wear OS. So far, there is no Fitbit device based on this operating system. It remains to be seen whether Google will completely revamp the Fitbit portfolio or will only supplement it with Wear OS. Osterloh vaguely announces that companies want to bring together the best of their respective fitness and smartwatch platforms. Osterloh promises existing Fitbit customers that they do not have to worry about their health data. In particular, Google would not use this information for promotional purposes. In addition, Fitbit customers would be given the opportunity to export and delete their data as they wish.