Fitness technology firm Fitbit is close to acquiring Pebble, the smartwatch maker, with an attendant purchase price of $34 million–$40 million. As part of the deal, Fitbit will get the Pebble portfolio of intellectual property and its operating system, which could help Fitbit expand its product offerings.
Pebble first went to market via Kickstarter, raising $7 million for its first smartwatch. Fitbit had its own debut on the public markets last year with a nearly 63 percent jump in its first day of trading to close at $32.50. Then, the stock became a busted IPO and now trades at a bit more than $8. Fitbit laid off 25 percent of its staff this past year and was approached by other firms at least twice for acquisitions. Will Pebble help kickstart Fitbit?
Here are the numbers:
$34 million–$40 million | Attendant purchase price Fitbit could pay to acquire Pebble
$7 million | Amount Pebble raised on Kickstarter
63 percent | Rise in price during Fitbit’s IPO
$32.50 | Fitbit’s closing price on day one
>$8 | Fitbit’s current price
25 percent | Percentage of staff Fitbit laid off over 2016