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Google buys Fitbit for US$2.1B, enters crowded wearables field

Google will buy the fitness tracker pioneer FitBit, for the $2.1 billion, as the search giant takes on the Samsung and Apple in the fast-growing market for the wearables devices.

Google revealed that it is seeks an opportunity to introduce “Made By the Google” wearables devices into the market and invest more in the wearable technology.

Fitbit has been offered $7.35 per share in cash, the company revealed, with a premium of around 19% to the stock closing price yesterday. The company shared was trading at $7.18 in trading before the bell.

“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.

Fitbit revealed that if Google fails to obtain the antitrust approval for the deal, then the internet company would need to pay a termination fee of $250 million.

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