A couple of days ago, it was noted that Google is in talks to acquire Fitbit. Today, the manufacturer has confirmed that it is all acquiring the wearable manufacturer Fitbit for $2.1 billion. This means that Google will be paying a value of $7.35 per share for acquiring Fitbit in an all-cash deal.
Google is paying a premium of above 70 percent to the Fitbit share price tag prior the shares were suspended announced this week amid the speculations of takeover. However, the price tag is a fraction of the company’s worth after it started in 2015.
Initially, the company’s shares were valued at $20 however soared to extra than $50 in the weeks following the initial public providing (IPO). However, due to the competition from bigger companies like Apple, Samsung, and Xiaomi, its shares suffered.
Commenting on this acquisition, Google SVP of devices and services Rick Osterloh said that the Fitbit get is “an opportunity to invest even extra in Wear OS as effectively as introduce Made by Google wearable devices into the market.”
Fitbit CEO and co-founder James Park said in a statement: “Google is an ideal partner to advance our mission. With Google’s resources and global platform, Fitbit will be in a position to accelerate innovation in the wearables category, scale faster, and deliver health even more accessible to everyone. I may not be extra excited for what lies ahead.”
Google has struggled to establish its presence in the wearables market. However, the company presently appears to be to be focused on making a dent in the wearable market, which is still quite young and is growing rapidly.
It’s noteworthy that this acquisition of Fitbit isn’t the initial one for Google. Noted this year, in January, the manufacturer had purchased a key chunk of IP from Fossil related to smartwatch tech for a sum of $40 million.