SAN FRANCISCO — Fitbit, Inc. maker of smartwatches and fitness devices, said it will be acquired by Google LLC for $7.35 per share in cash, valuing the company at $2.1 billion.
Fitbit stock rose more than 15 percent on the news to close at $7.14 per share on Friday. News of a potential Fitbit-Google deal broke earlier this week but was made official on Friday.
The acquisition sets up a smartwatch battle between Silicon Valley giants Google and Apple and its popular Apple Watch lineup.
“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. “Google is an ideal partner to advance our mission. With Google’s resources and global platform, Fitbit will be able to accelerate innovation in the wearables category, scale faster, and make health even more accessible to everyone. I could not be more excited for what lies ahead.”
“Fitbit has been a true pioneer in the industry and has created terrific products, experiences and a vibrant community of users,” said Rick Osterloh, Senior Vice President, Devices & Services at Google. “We’re looking forward to working with the incredible talent at Fitbit, and bringing together the best hardware, software and AI, to build wearables to help even more people around the world.”
Fitbit has sold more than 100 million devices and has a global community of millions of active users, utilizing data to deliver unique personalized guidance and coaching to its users. Fitbit says it will continue to be available on both major mobile platforms — Android and iOS.
Fitbit says it will continue to put users in control of their data and will remain transparent about the data it collects and why. The company stresses it never sells personal information, and Fitbit health and wellness data will not be used for Google ads.
Google made the deal as part of an investment in its Wear OS platform.
The transaction is expected to close in 2020, subject to customary closing conditions, including approval by Fitbit’s stockholders and regulatory approvals.
Qatalyst Partners LLP acted as financial advisor to Fitbit, and Fenwick & West LLP acted as legal advisor.