Google confirms acquisition of Fitbit for $2.1 billion

November 3rd, 2019   Penny Snow   news Tags: ,

A couple of days ago, it was reported that Google is in talks to acquire Fitbit. Presently, the company has confirmed that it is all acquiring the wearable manufacturer Fitbit for $2.1 billion. This means that Google will be paying a price of $7.35 per share for acquiring Fitbit in an all-cash deal.

Google confirms acquisition of Fitbit for $2.1 billion
Google is paying a top quality of above 70 percent to the Fitbit share value before the shares were suspended noted this week amid the theories of takeover. However, the price tag is a fraction of the company’s price after it started in 2015.

Initially, the company’s shares were priced at $20 however soared to extra than $50 in the weeks following the first public offering (IPO). But, because of to the competition from larger 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 purchase is “an opportunity to invest even more in Wear OS like effectively as represent Made by Google wearable products into the market.”

Fitbit CEO and co-founder James Park said in a declaration: “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 make health even extra accessible to everyone. I may not be extra excited for which lies ahead.”

Google has struggled to establish its presence in the wearables market. However, the company now appears to be focused on making a dent in the wearable market, which is yet Very 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 major chunk of IP from Fossil related to smartwatch tech for a sum of $40 million.

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