The agreement puts Alphabet in a race against Apple in tracking fitness and health data. Fitbit’s shares had risen 30% earlier this week as a result of reports that Google’s parent company made an offer. The transaction is expected to be finalized in 2020.
Google will pay $ 7.35 per share for the fitness monitor, which will help it advance its ambitions in wearable technology. The company does not manufacture its smartwatch.
The Fitbit share jumped 16% after the announcement. Like comparable products manufactured by Garmin, Apple, and Samsung, the Fitbit offers consumers immediate access to increasingly specific ranges of fitness data – from daily steps to heart rate to sleep. However, the data has also become a treasure for employers and insurance companies, which complicates the relationship between workers and their bosses.
“Fitbit has been a true pioneer in the industry and has created products, experiences and a dynamic user community,” said Rick Osterloh, senior vice president of devices and services at Google.
Added: “We look forward to working with Fitbit’s incredible talent and bringing together the best hardware, software, and artificial intelligence to create wearable devices to help even more people around the world”.
Although the agreement could boost Google in a market in which it has lagged for a long time, it could also pose new regulatory problems to the technology giant. The two companies have indicated in their custody accounts that they should probably get approval from the antitrust authorities to complete the merger, a process that comes at a time when all of Silicon Valley is in Washington’s political sights to be too big and too powerful.
Apple has presented serious competition for Fitbit. At the end of last year, the Apple brand held about half of the global smartwatch market in terms of delivered units.