Google has reached a definitive agreement to acquire wearables brand Fitbit, Google said in a press release on Friday (Nov. 1).
Google is paying $7.35 per share in cash for Fitbit, valuing the company at about $2.1 billion, various news outlets reported.
“Over the years, Google has made progress with partners in this space with Wear OS and Google Fit, but we see an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market,” Google’s Senior Vice President of Devices and Services Rick Osterloh said in the post.
The company said it will work with Fitbit’s experts to develop top artificial intelligence (AI), software and hardware to help stimulate advancement in wearables that could benefit people worldwide.
“Google aspires to create tools that help people enhance their knowledge, success, health and happiness. This goal is closely aligned with Fitbit’s long-time focus on wellness and helping people live healthier, more active lives. But to get this right, privacy and security are paramount,” Osterloh said. “When you use our products, you’re trusting Google with your information. We understand this is a big responsibility, and we work hard to protect your information, put you in control and give you transparency about your data.”
Google said users’ personal information will never be sold and that there will be transparency about what data is collected. Users will have the option to review their data and the freedom to delete it or move it elsewhere.
News of a possible acquisition broke on Monday (Oct. 28), causing the stock to skyrocket by the day’s close. The acquisition could see Alphabet, Google’s parent company, making a larger play to expand into the health and fitness sector. The surge added over $330 million to the company’s market cap, which reached around $1.5 billion.
Before Monday’s news, Fitbit had lowered its guidance for the year, singling out lower-than-expected sales of its new watch. Its executive Adam Pellegrini stepped down earlier this year to join CVS.