A couple of days ago, it was announced that Google is in talks to acquire Fitbit. Presently, the company has established that it is all acquiring the wearable company Fitbit for $2.1 billion. This means that Google will be paying a value of $7.35 per share for acquiring Fitbit in an all-cash deal.
Google is paying a high quality of more than 70 percent to the Fitbit share price prior the shares were suspended noted this week amid the theories of takeover. However, the price is a fraction of the company’s price whenever it started in 2015.
Initially, the company’s shares were offered at $20 however soared to more than $50 in the weeks following the first public providing (IPO). However, thanks to the competition from bigger companies as Apple, Samsung, and Xiaomi, its shares suffered.
Commenting on this acquisition, Google SVP of products and services Rick Osterloh said that the Fitbit buy is “an opportunity to invest even extra in Wear OS as well as present 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 capable to accelerate innovation in the wearables category, scale faster, and deliver health even more accessible to everyone. I might not be more excited for which lies ahead.”
Google has struggled to establish its presence in the wearables market. But, the company now seems to be focused on making a dent in the wearable market, what is yet pretty young and is growing rapidly.
It’s noteworthy that this acquisition of Fitbit isn’t the first one for Google. Noted this year, in January, the company had purchased a major chunk of IP from Fossil related to smartwatch technology for a sum of $40 million.