Categories Technology

Fitbit (FIT) agrees to be acquired by Google for $2.1 billion

Putting an end to speculation, wearables maker Fitbit, Inc. (NYSE: FIT) Friday said it agreed to be acquired by Alphabet’s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google. The $7.35-per share deal values the company at $2.1 billion. The transaction is expected to close next year. Fitbit’s stock was trading up 15% following the announcement.

“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,” said Fitbit CEO James Park.

After entering the wearable market more than a decade ago, Fitbit achieved steady growth riding on the popularity of its products among athletes and fitness freaks. There were reports that the company could be pursuing its sale, considering the lackluster financial performance in recent years.

Related: Fitbit Q2 2019 Earnings Conference Call Transcript

The company said it will continue to protect user information and ensure that personal data is not used for Google ads. The acquisition is pending regulatory sanction and approval by the shareholders of Fitbit.

Fitbit has been losing market share to rivals including Garmin (GRMN), though the functions of their fitness devices vary. The company generates more than 40% of the revenue from its smartwatch Versa. Of late, it was under pressure to explore other options to regain market share, especially after tech giant Apple (NASDAQ: AAPL) started making inroads into the wearable market.

Fitbit is scheduled to publish its third-quarter results on November 6, after the closing bell. Analysts are looking for a loss of $0.1 per share, compared to profit last year.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Cost reduction has become a priority for FedEx (FDX) after a challenging quarter

Shares of FedEx Corporation (NYSE: FDX) were up 1% on Tuesday. The stock has dropped 44% year-to-date and 34% over the past 12 months. The company delivered mixed results for

Prime Medicine is the next big biotech to pursue IPO. Here’s all you need to know

After a soft start to the year, the IPO market has witnessed muted activity so far though a few big companies entered the stock market. On the heels of AIG

Stock Watch: Is Darden Restaurants a good buy after earnings?

After a prolonged slowdown, the restaurant industry is returning to normal patterns but macroeconomic uncertainties and high inflation are currently playing spoilsport for it. While the pandemic-related slump forced many

Add Comment
Viewing Highlight