Google announced on Friday that it entered into a definitive agreement to acquire FitBit, a leading wearables brand. The acquisition will be done at USD 7.35 per share, valuing the wearables company at a fully diluted equity value of approximately USD 2.1 billion.
In a statement, Google’s Senior Vice President for Devices & Services, Rick Osterloh, said that that the acquisition would help Google “spur innovation in wearables and build products to benefit even more people around the world.”
Google’s VP pointed out that the Fitbit health and wellness data gathered from users’ devices will not be used for Google ads.
“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. 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. Similar to our other products, with wearables, we will be transparent about the data we collect and why. We will never sell personal information to anyone. 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,” said Osterloh.
According to the deal, Fitbit will be joining Google altogether and not remain as a separate division.
“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.”
Fitbit says it has sold over 100 million devices worldwide so far.
The transaction is expected to close in 2020, subject to customary closing conditions, including approval by Fitbit’s stockholders and regulatory approvals.