The rumors are true. A week after word surfaced that Google planned to buy Fitbit, the companies have confirmed the purchase in a blog post authored by Google device SVP, Rick Osterloh. The match could ultimately prove beneficial for both parties. Google has struggled to make much of a dent in the wearables category, leading the software giant to purchase a large chunk of IP from watchmaker, Fossil for $40 million.
Fitbit, meanwhile, has had issues maintaining growth in recent years. The company, which first pioneered and then dominated the wrist-worn tracker space, struggled as smartwatches grew and ultimately dominated the space. While late to the category, the company has had luck with the Versa watch, the result of its own acquisition of Pebble, Vector and Coin, while working to pivot much of its focus into healthcare.
“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,” Osterloh writes. “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.”
Fitbit confirmed that the $7.35 per share deal values the wearable pioneer at around $2.1 billion.
“More than 12 years ago, we set an audacious company vision – to make everyone in the world healthier,” CEO James Park said in a statement. “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 expected to close at some point next year, pending the standard regulatory and stockholder approval.