logo-loader
viewSamsung Electronics

Google parent Alphabet to buy smartwatch maker Fitbit for $2.1 billion

Fitbit confirmed it has been offered $7.35 per share in cash by Alphabet, a premium of about 19% to Thursday's closing price

Samsung Electronics - Google to buy smartwatch maker Fitbit for $2.1 billion
Unlike rivals, Google has yet to develop any wearable offerings

Alphabet Inc (NASDAQ:GOOGL), which owns Internet giant Google, is joining the fast-growing market for fitness trackers and smartwatches.

Google’s parent will buy wearable device maker Fitbit Inc (NYSE:FIT) for $2.1 billion.

Fitbit confirmed on Friday it has been offered $7.35 per share in cash by Alphabet, a premium of about 19% to the stock’s closing price on Thursday.

READ: Google to spend $3.3B to expand European data centers

Shares of Fitbit shot nearly 16% higher to $7.15 in early New York trade.

Fitbit shares have gained more than 40% since Reuters reported on Monday that Google had made an offer for the maker of the popular fitness trackers.

While Google has joined other major technology companies such as Apple Inc (NASDAQ:APPL) and Samsung Electronics Co Ltd in developing smartphones, it has yet to develop any wearable offerings.

In a blog post following the announcement, Google’s hardware chief Rick Osterloh explained how the acquisition can help Google advance its ambitions for Wear OS, its software for smartwatches.

“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,” Osterloh said. “Google also remains committed to Wear OS and our ecosystem partners, and we plan to work closely with Fitbit to combine the best of our respective smartwatch and fitness tracker platforms.”

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Minera Alamos announces 14-million-dollar deal with Osisko Gold Royalties to...

Minera Alamos (CVE: MAI) President Doug Ramshaw joined Steve Darling from Proactive Vancouver on Skype with details about a deal they have signed with Osisko Gold Royalties to help fund construction on their Santana project in Mexico. Ramshaw telling Proactive how the deal will work and the...

2 days, 3 hours ago

2 min read