Retail: 75
Retail: 188
Mon, Aug 28, 2017
Vol 1, Issue No. 33

Google Buying Fitbit for $2.1 Billion

Google is paying a 31 percent premium on Fitbit’s market capitalization to acquire the 12-year old maker of fitness trackers and smartwatches. The transaction, suspected for days, is expected to close in 2020.

“We see an opportunity to invest even more in Wear OS, as well as introduce Made by Google wearable devices into the market,” commented Rick Osterloh, SVP of devices and services for Google.

Fitbit currently has more than 28 million active users worldwide, and in a letter to them, company CEO, President and Co-Founder James Park said there would be no immediate changes at Fitbit. He also assured the company remains committed to strong data privacy and security protections, adding personal user information and Fitbit health and wellness data will not be used for Google ads.

In other deals last week,

  • Global lifestyle brand Herschel Supply Co., based in Vancouver, WA, lands a $60 million investment from a consortium consisting of Eurazeo, Alliance Consumer Growth and the private capital arm of the Healthcare of Ontario (Canada) Pension Plan. The funds will help Herschel accelerate growth across product categories, distribution channels and geographies.
  • Kranos Corp., doing business as Schutt Sports, obtains an $18 million investment from Innovatus Capital Partners. The Litchfield, IL team equipment firm will utilize the additional capital to launch new products, fund working capital and expand into new markets.