Fitbit has announced that it has entered into a definitive agreement to be acquired by Google for $7.35 per share in cash, valuing the company at a fully diluted equity value of approximately $2.1 billion.
“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 has been a true pioneer in the industry and has created terrific products, experiences and a vibrant community of users,” said Rick Osterloh, Senior Vice President, Devices & Services at Google. “We’re looking forward to working with the incredible talent at Fitbit, and bringing together the best hardware, software and AI, to build wearables to help even more people around the world.”
Fitbit, known for delivering innovative, affordable wearable devices and services in the fitness sector, has focused on helping its users understand and change their behavior to improve their health. The result has been to deliver a personalized health and fitness platform without the hefty price tag of personal fitness coaches.
Fitbit launched Fitbit Premium, a paid subscription service through the Fitbit app in September 2019. The platform features advance sleep features, healthier eating assistance, personal insights, thousands of exercise sessions, health reports and much more.
Approximately 14 million adult Americans make use of a paid subscription digital health service every year and the wearable device market has seen significant growth throughout 2019.
The transaction is expected to close in 2020, subject to customary closing conditions, including approval by Fitbit’s stockholders and regulatory approvals.