What: Google LLC has signed an agreement to acquire Fitbit for $7.35 per share, giving the latter a valuation of approximately $2.1 billion, according to a Fitbit (FIT 6,97, -1,27%) statement published today.
So what: Earlier this week Reuters reported Google’s intentions of a potential acquisition as part of its strategy to get on the wearable bandwagon.
The move will enable the search company to take on the likes of Apple.
This will be Google’s biggest purchase after its 2014 acquisition of Nest for $3.2 billion.
When: The deal, subject to Fitbit shareholder approval, is expected to be finalized in 2020, per today’s announcement.
Fitbit, one of the first fitness trackers and wearables companies, says it has sold more than 100 million devices since it was founded in 2007.
After the deal: According to the company, it will maintain its platform-agnostic strategy, supporting devices across Android and iOS.
“Fitbit will continue to put users in control of their data and will remain transparent about the data it collects and why. The company never sells personal information, and Fitbit health and wellness data will not be used for Google ads.”, the company says.
Fitbit supports more than 28 million active users, company data shows.
Fitbit stock has gone up to $7.12 per share from $4.29 at the beginning of this week.