Only days after it was reported that Google was close to purchasing Fitbit, Google and Fitbit now verified the purchase.
Google will spend $7.35 per share for the wearables business in an all-cash deal that evaluates Fitbit at $2.1 billion.
Comparatively speaking, this is a big landing for Fitbit.
The History of FitBit
The company’s rate has shifted significantly as it worked to change to a growing market as it had ruined some of its more current launches.
In summer 2015, it scored an all-time high of $51.90, but this August, it dropped as low as $2.81 after more than two years hanging below $7.
A pattern that improved dramatically after the initial reports of Google’s interest started to surface in September.
Is Google Making The Right Decision?
The match could eventually prove useful for both parties.
Google has strived to make much of a hole in the wearables category.
But wearables are yet a growing market, and at a point when Apple has seen its most significant category growth in the unit that houses its wearables effort, the Apple Watch, Google has never dropped out.
In January this year, the Android giant bought a large part of IP from watchmaker Fossil for $40 million, a move that in memory looks like a set of the stage for what was to happen today.
While Google has also spent in a lot of its in-house construction, buying Fitbit signifies a step-change and a bolt-on of years of work centered mainly on the wearables category.
Across the years, Google has made development with partners in this area with Wear OS and Google Fit, but they see an opening to invest yet more in Wear OS and include Made by Google wearable devices into the market.
The Overall Benefits of This Partnership
By operating jointly with Fitbit’s team of specialists, and bringing the best AI, software, and hardware mutually, they can help drive change in wearables and develop products to help even more people around the world.
Beyond that, the addition of Fitbit’s IP linked with Fossil’s IP could eventually be the shot to the arm Wear OS requires.
The deal is assumed to close at any time next year, pending the usual administrative and stockholder approval.
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