Recently, Alphabet Inc, Google’s parent company reportedly made an offer to acquire U.S. wearables device maker, Fitbit Inc. for an undisclosed amount. Now, Google has confirmed that it is acquiring Fitbit for $2.1 billion and Fitbit will be joining Google itself and Google sees this as an opportunity to invest even more in Wear OS as well as introduce ‘Made by Google’ wearable devices into the market.
Google LLC acquires Fitbit, Inc for $7.35 per share in cash, valuing the company at a fully diluted equity value of approximately $2.1 billion. Google says that they have made progress with partners in this space with Wear OS and Google Fit, but now sees an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market. So we can expect Google to introduce its own WearOS smartwatch in the future.
Google also confirmed that similar to their other products, with wearables, the company will be transparent about the data they collect and why. Fitbit health and wellness data will not be used for Google ads and Fitbit users will be given a choice to review, move, or delete their data. Similarly, Fitbit also confirmed that it will remain transparent about the data it collects and why and the health and wellness data will not be used for Google ads.
Today, we’re announcing that Google has entered into a definitive agreement to acquire Fitbit, a leading wearables brand. Over the years, Google has made progress with partners in this space with Wear OS and Google Fit, but we see an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market. Fitbit has been a true pioneer in the industry and has created engaging products, experiences and a vibrant community of users. By working closely with Fitbit’s team of experts, and bringing together the best AI, software and hardware, we can help spur innovation in wearables and build products to benefit even more people around the world.
James Park, co-founder and CEO of Fitbit in a statement 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.