This acquisition is Google’s entry into the wearable device market.
In a development that marks Alphabet Inc-owned Google’s intention of entering the fitness trackers and smartwatches market, the search engine giant said it will acquire Fitbit Inc for $2.1 billion.
On Friday, the wearable device maker said it had been offered $7.35 per share in cash which amounts to a premium of 19% to its stock’s closing price on Thursday.
While Google, like other major tech giants such as Apple Inc and Samsung Electronics Co Ltd is in the business of developing smart phones, it has yet to develop any wearable offerings.
Qatalyst Partners LLP acted as financial adviser to Fitbit, while Fenwick & West LLP was its legal adviser.