Google announced that it is buying Fitbit, the world’s leading maker of wearable fitness activity trackers. The deal values Fitbit around $2.1 billion, making it one of Google’s largest acquisitions.
The news comes just days after a Reuters report claimed that Google was in talks to buy the wearable giant.
The market reacted favorably to the announcement. Fitbit’s stock surged 16%, while shares of Alphabet were up about 0.8%.
“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 pioneered the wearables category by delivering innovative, affordable and engaging devices and services. Being “on Fitbit” is not just about the device – it is an immersive experience from the wrist to the app, designed to help users understand and change their behavior to improve their health, reports Fitbit.
Fitbit takes consumer trust very seriously. Strong privacy and security guidelines have been part of Fitbit’s since its inception. The company never sells personal information, and Fitbit health and wellness data will not be used for Google ads, the company said.
The transaction is expected to close in 2020, subject to customary closing conditions, including approval by Fitbit’s stockholders and regulatory approvals.
“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.”