Google Will Buy Fitbit for $2.1 Billion

By Reuters

Alphabet Inc-owned Google will buy Fitbit Inc for $2.1 billion, as the biggest Web search company looks to take on Apple and Samsung in the crowded market for fitness trackers and smartwatches.

Google said on Nov. 1 that it sees an opportunity to introduce its own wearable devices and invest more in digital health. The purchase will also bring a rich trove of health data gathered by millions of Fitbit’s devices.

Fitbit’s fitness trackers and other devices monitor users’ daily steps, calories burned and distance traveled. They also measure floors climbed, sleep duration and quality, and heart rate.

“We believe Google is a natural fit. The deep health and fitness data, coupled with the 28 million active users on the Fitbit platform, offer a tremendous value,” Craig Hallum analysts wrote in a note.

Xiaomi dominates the global wearables market, with a 17.3 percent market share in the second quarter of 2019, followed by Apple. Fitbit owns 10 percent of the market, according to data from market research firm International Data Corp.

By Akanksha Rana and Noor Zainab Hussain