Google has seal a deal to acquires wearable fitness products company Fitbit Inc. for $2.1 billion, a sign that the internet company wants to make up ground in the wearable technology field.
Google a unit of Alphabet Inc said Friday that it would pay $7.35 per share to the San-Francisco based maker of fitness trackers and smartwatches company.
Google said the deal marks a further push into consumer electronics, an area where it has yet to gain significant traction to complement its massive internet-search and advertising business.
Since 2014 Google has been developing wear Os, software used for smart watches but has struggled to break into the wearable hardware, facing staunch competition from Apple, Samsung and others.
Fitbit makes so-called wearables, or watches and brackets that primarily track health information like heart rate. It also has a paid subscription service that suggests exercises and other lifestyle changes based on the individual data it collects.
Given that Fitbit collects such myriad and personal data on its users, the deal will also raise issue around consumer privacy. In announcing the acquisition, Google said it would not use Fitbit data to help power it's massive online advertising business.
"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" said Rick Osterloh, a senior vice president of devices and services at Google. And we will give Fitbit users the choice to review, move or delete their data.
The deal is expected to close in 2020. It first requires the approval of regulators and Fitbit shareholders.
Google said the deal marks a further push into consumer electronics, an area where it has yet to gain significant traction to complement its massive internet-search and advertising business.
Since 2014 Google has been developing wear Os, software used for smart watches but has struggled to break into the wearable hardware, facing staunch competition from Apple, Samsung and others.
Fitbit makes so-called wearables, or watches and brackets that primarily track health information like heart rate. It also has a paid subscription service that suggests exercises and other lifestyle changes based on the individual data it collects.
We’ve signed an agreement to acquire @Fitbit. Together, we aim to spur innovation in wearables and build helpful products to benefit more people around the world. https://t.co/HSfQVWnHJB— Google (@Google) November 1, 2019
Given that Fitbit collects such myriad and personal data on its users, the deal will also raise issue around consumer privacy. In announcing the acquisition, Google said it would not use Fitbit data to help power it's massive online advertising business.
"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" said Rick Osterloh, a senior vice president of devices and services at Google. And we will give Fitbit users the choice to review, move or delete their data.
The deal is expected to close in 2020. It first requires the approval of regulators and Fitbit shareholders.
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