(Reuters) – Alphabet, Inc.-proprietary to Google, it will buy a Fitbit, Inc. for $2.1 billion, the largest Web search company, it seems, to take on Apple and Samsung in the crowded field of fitness trackers and smart watches.
FILE PHOTO: The logo for the wearable device maker Fitbit, Inc. it is displayed on a screen on the floor of the New York Stock Exchange (NYSE) as the company starts public trading in the New York, New York, united states of america, October 28, 2019. REUTERS/Brendan McDermid/File Photo
Google announced on Friday that it sees an opportunity to make their own wearable devices, and increased investments in digital health. The acquisition will also lead to a rich treasure trove of health data that was collected by the millions of Fitbit’s devices.
Fitbit, fitness trackers and other devices to monitor users ‘ daily steps, calories burned, and distance traveled. They will also measure floors climbed, sleep duration and quality, heart rate.
Can track, the share of the fitness tracking market has been threatened by the deeper-pocketed companies such as Apple and Samsung Electronics Co. Ltd., as well as cheap offerings from China’s Huawei Technologies Co Ltd [HWT.UL], and Xiaomi Corporation.
“We believe that Google is a natural fit. A deep health and fitness data, in combination with the 28 million active users on the Fitbit platform, and offer a tremendous value,” Craig Hallum analysts wrote in a note.
Xiaomi, which dominates the global communication market, with a 17.3% market share in the second quarter of 2019 at the latest, to be followed by the District. Fitbit is the owner of 10% of the market, according to data from market research firm International Data Corp. (a).
Reuters first reported the deal on Monday.
Fitbit, which helped pioneer the wearable devices are all the rage, has been working with insurance companies and making tuck-in acquisitions in the field of health care, as part of its commitment to the diversification of income sources. Analysts have said that a lot of the value of the company, the company may now be in his medical records.
The US anti-trust regulators, there is little reason to oppose to the roman Alphabet, it is going to have to buy a Fitbit, but that doesn’t mean that the officers of the s. S., which is supported by a number of anti-Google, legislators, the proposed acquisition of additional control.
Google has been under antitrust investigation by the Department of Justice, the united states House of Representatives, Judiciary Committee, and dozens of state attorneys general for allegedly using its vast market power to crush smaller competitors.
Fitbit has raised privacy concerns in the past: In 2011, the sexual activity of men, with the help of the health-and-fitness-tracker, which was found to be open to the public online.
The company said on Friday that it is the users’ health and wellness, this information will not be used for the Google ads on our website. Google said in a blog post that it would Track users have the choice to review, move or delete any of their personal data.
Google, which is the defense of its privacy practices, following a number of legal probes, and said that it would have to be transparent about the data it collects for its devices, and does not sell such information.
Fitbit, brings to the deal, partnerships in which the company has been hit with a number of major pharmaceutical companies. In October, Fitbit announced a collaboration with Bristol-Myers Co., and Pfizer Inc and is on the early detection of irregular heartbeat-or atrial fibrillation, the device.
Track in August, it launched its latest smart watch, Versa 2, and add to it Amazon.com Inc. ‘ s voice assistant, Alexa, online payments and the storage of the music to the device and its capabilities.
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Fitbit has been offered, the $7.35 per share in cash, according to the company, at a premium of approximately 19% of the stock, the closing price on Thursday. The equity shares of the company were trading up 15% at $7.11. The shares of the Alphabet, which were nearly flat at $1,263.18.
The equity shares of the company’s profit by more than 40 percent since Reuters reported on Monday that Google had made an offer for the Track.
Qatalyst ners LLP, financial adviser to Track the deal, which is expected to be in 2020. Fenwick & West LLP was the legal adviser.
Reporting by Noor Zainab Hussain and Akanksha Rana, Bengaluru; Editing by Anil D ” Silva and Jonathan Oatis