Google to Acquire Wearable Device Maker Fitbit for $2.1 Billion in Cash

What's Inside

On November 1, 2019, Fitbit announced an agreement to be acquired by Google for $7.35 per share in cash, representing a deal value of approximately $2.1 billion.

• The price represents a 19% premium to Fitbit’s closing share price on October 31 and a multiple of 1.4 times FY2018 revenues.
• The acquisition will allow Google to combine the newly acquired hardware maker with Google’s Android operating system (OS) for smartphones and smartwatches, improving the company’s ability to optimize hardware and software to better compete with market leader Apple. Google acquired Fossil’s smartwatch technology in January 2019.
• The transaction is expected to close in 2020, subject to customary approvals.