26 August 2020
It is now official that Google is acquiring Fitbit, leading wearables brand as it has entered into a definitive agreement. The announcement comes just days after the report from Reuters which claimed Google was in talks to buy the popular fitness tracker company. Google has announced the new acquisition via a blog post and Fitbit has made it official via a press release.
Fitbit discloses the deal is worth about $2.1 billion and the transaction is expected to close in 2020, subject to the approval of Fitbit’s stockholders and regulatory approvals.
The big acquisition shows Google is not staying idle while its rivals are progressing in the wearables market. The deal will give Wear OS a much-needed boost that Google has ever desired for. Fitbit has a strong foothold in the fitness trackers’ market and this is what Google really needs. Years of expertise will help Google to push its Wear OS to a new height and at a place where it could prove itself to be a true contender.
Google is a software company first, though it has developed a series of products in-house. But its struggle in the wearables market is real which can’t be ignored. Fitbit comes as a viable resource to boost things even further. And Google with its things where it is good – software and AI will give birth to some interesting wearables.
Rick Osterloh, Senior Vice President, Devices & Services said that the Fitbit purchase is “an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market.” He also says,
"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."
Fitbit says that Google is an ideal partner for it to advance its mission further. Also, with the help of Google’s resources and global platform, "Fitbit will be able to accelerate innovation in the wearables category."
Google and Fitbit both announced that the control of data will remain transparent and “Fitbit health and wellness data will not be used for Google ads.” The deal will close in 2020 and we are eager to see how this acquisition will bring opportunities for Google.