Google has announced that it has "entered into a definitive agreement to acquire Fitbit," a leading manufacturer of fitness trackers and smartwatches, for approximately $2.1 billion.
The transaction is "expected to close in 2020, subject to customary closing conditions," including regulatory permissions and approval by stockholders, according to the US-based wearables brand.
Here's more on this matter.
'Made by Google' wearable devices to arrive soon
Google is all set to expand its hardware portfolio and we can expect to see the first-ever wearable from the company sometime soon.
In a blog post, Google SVP of devices and services Rick Osterloh said that the Fitbit deal is "an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market."
Fitbit's team of experts to join Google
Now, as part of the deal, Fitbit's team of experts will join Google and work together to create new wearables.
However, it remains to be seen if the future health trackers and smartwatches will be marketed under the Fitbit's brand or Google will introduce them under a new brand name.
Perhaps, some flagship exclusive models could arrive under the Pixel Watch branding.
Meanwhile, Fitbit data will NOT be used for Google ads
"Fitbit will continue to put users in control of their data and will remain transparent about the data it collects and why. The company never sells personal information, and Fitbit health and wellness data won't be used for Google ads," Fitbit said in a statement.
Previously, Google acquired wearable tech from Fossil at $40 million
Interestingly, Google has been trying to foray into the wearables market with its Wear OS platform, but it has struggled due to a lack of good hardware device. Hopefully, that gets addressed with this deal.
That said, Google had also purchased a hybrid watch technology from Fossil for $40 million. Surely, Google has something up its sleeve as it advances in this new category.