Friday morning Google announced on its official blog that is going to acquire Fitbit. SVP of Devices & Services, Rick Osterloh said that “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 will pay $7.35 per share in cash, which values Fitbit at approximately $2.1 billion. This deal is expected to close in 2020.
According to a Fitbit press release, the company will still take privacy for health and fitness data seriously, noting that “Fitbit health and wellness data will not be used for Google ads.”
This gives Google a big “upgrade” on its wearable division. Now they can go against the “Big Boys” of wearables like Apple and Samsung. This might actually work for Google since Fitbit has great hardware and Google has put a lot of effort into its Software Wear OS.
2019 has seen Google doing a lot of shopping for fitness-focused wearable companies. Early in the year they bought for $40 million Fossil’s secret smartwatch tech.
Now we have to wait and see what Google has in store for the future.