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Fitbit company pioneered the wearables category by delivering innovative, affordable, and engaging devices and services. It boasted of an immersive experience from the wrist to the app, designed to help users understand and change their behavior to improve their health. This unique approach aided Fitbit to sell more than 100 million devices and support an engaged global community of millions of active users
FREMONT, CA: Wearable device maker Fitbit reached an agreement to be acquired by Google LLC for a fully diluted equity value of USD 2.1 billion. The acquisition by Google is an indication towards the software giant's entry into the fast-growing market for fitness trackers and smartwatches, to compete with the likes of Apple Inc and Samsung Electronics. As part of the deal, Fitbit has been offered USD 7.35 per share in cash and a premium of 19 percent of the stock's closing price on Thursday. The company's shares gained more than 40 percent since Monday, after the news of Google making an offer broke out.
“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.”
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The company pioneered the wearables category by delivering innovative, affordable and engaging devices and services. It boasted of an immersive experience from the wrist to the app, designed to help users understand and change their behavior to improve their health. This unique approach aided Fitbit to sell more than 100 million devices and support an engaged global community of millions of active users, utilizing data to deliver unparalleled personalized guidance and coaching to its users.
“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 device SVP Rick Osterloh explained. “Fitbit has been a true pioneer in the industry and has created engaging products, experiences and a vibrant community of users. By working closely with Fitbit’s team of experts, and bringing together the best AI, software and hardware, we can help spur innovation in wearables and build products to benefit even more people around the world.”
Foreseeing the inevitable concern around Google’s upcoming access to a bevy of health data, Osterloh looked to temper criticism with reassurance that it will not be using the information for advertising. “We will never sell personal information to anyone,” the executive addressed. “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.”
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