It was announced today that Fitbit, the company known for fitness trackers and devices, will be purchased by Google for $2.1 Billion.
With the tentative deal in place, Google will take control of Fitbit, adding it to the list of brands under the Google umbrella. With google struggling in the wearables sector, this is a prudent move, one that could help it in its fight to bring WearOS to more people, and secure Android as a dominant player in the sector. In a blog post, Rick Osterloh Google SVP of devices and services outlined that the acquisition will be “an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market.”
“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.
Fitbit has had a solid stake in the market, having itself purchased the beloved Pebble brand in 2017. Fitbit has managed to maintain market dominance in the fitness and wearable sector with a wide range of devices that fit most budgets. It will be interesting to see how Google integrates the teams, and how the new Fitbit will look post-purchase.
Google has long been a dominant player in the software space, so this will give Google and Fitbit a leg up in the wearable sector. Giving the strengths of both companies and the teams behind them will have a stronger chance against the market dominance of Apple and the Apple Watch. It is hard to tell how the wearable sector will look going forward, but things are looking to get much more interesting.
The purchase is expected to close in 2020 and is subject to customary closing conditions, including approval by Fitbit’s stockholders and regulatory approvals.
