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,