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Google to acquire Fitbit, valuing smartwatch maker $ 2.1 billion

Alphabet's parent company will buy Fitbit, placing the giant tech giant with Apple in the fitness tracking space. The value of the Fitbit deal is about $ 2.1 billion at fully diluted equity value, according to a release on Friday.

Fitbit shares jumped 16%, while Alphabet shares rose about 0.8%

Google will pay $ 7.35 a share in cash acquisitions, Phibit said. The high Fitbit stock price all the time was $ 51.90 on August 5, 2015, a few months after its debut on the stock market at $ 30.40. According to the announcement, the deal is expected to close in 2020.

On Monday, Fitbit's shares jumped more than 30% on the news that Alphabet had made an offer to acquire the watch maker. At the end of Monday, Fitbit's market cap was $ 1

.5 billion, up from $ 340 million on the previous trading day.

Fitbit Insire HR

Todd Haselton | CNBC

Following the announcement, Google's hardware chief Rick Osterloh posted a blog post explaining how the acquisition could help Google expand its ambitions for Wear OS, its smartwatch software.

"By working closely with Fitbit's expert team and bringing together the best AI, software and hardware, we can help drive innovation in wearables and build products to benefit even more people around the world," he said Osterloch. "Google also remains committed to Wear OS and our ecosystem partners. We plan to work closely with Fitbit to combine the best of our respective smartwatch and fitness tracking platforms."

Google will not use Fitbit health and wellness data for its ads, according to the release. That didn't convince Rep. David Tsitsilin, D-R.I., Who is one of the leaders of the antitrust survey on Google. Cicillin said in a statement that the acquisition "will also give the company an in-depth view of the most sensitive information of Americans."

economic power. It deserves an immediate and thorough investigation, "he said.

The move comes after Google announced in January a deal to buy $ 40 million worth of Fossil smartwatch technology. Fossil was already one of the major brands building Google smart watches Wear OS.

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