Google To Acquire Fitbit For $2.1 Billion
Google finalized a deal to acquire Fitbit for approximately $2.1 billion.
The acquisition, which is expected to close at some point next year, demonstrates an intentional effort at increasing Google’s stake in the electronic wearables sector. The deal itself resulted in each share being purchased for $7.35. That price is a 19% premium from the closing price that Fitbit had on Thursday. At the announcement of the deal, Fitbit’s shares rose to $7.14.
Wearables have accounted for an increasing portion of Apple’s sales, with successes such as the Apple watch and AirPods. Apple reported a 54% increase in sales of its wearables products during the third quarter. This latest acquisition now puts Google in direct competition for wearables market share.
There has been worry that this acquisition will now give Google increased access to personal data.
“Similar to our other products, with wearables, we will be transparent about the data we collect and why. We will never sell personal information to anyone. Fitbit health and wellness data will not be used for Google ads. And we will give Fitbit users the choice to review, move, or delete their data,” Said Rick Osterloh, the head of Google’s hardware division.