(Reuters) – Alphabet, Inc.-the property of Google, is to purchase a fitness tracker, pioneer, Fitbit, Inc. for $2.1 billion, as the search giant looks to take on Apple and Samsung in the fast-growing market for mobile devices.
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 he sees it as a chance to get acquainted with the “Made by Google for portable devices in the market, and are investing more in mobile technology. It was announced that a deal to buy a Fossil Group, Inc., intellectual property rights, in connection with smartwatch technology earlier this year. (a little bit.m/2C1zsIj)
Can track, the share of the fitness tracking market is under threat due to the deeper-pocket companies, such as Apple and Samsung Electronics Co. Ltd., as well as cheap offerings from China’s Huawei Technologies Co Ltd and Xiaomi Corp.
“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, data from the International Data Corp. showed.
Fitbit fitness tracking devices to monitor users ‘ daily steps, calories burned, and distance traveled. They will also measure floors climbed, sleep duration and quality, heart rate.
The company in August also launched its latest smartwatch, 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.
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 company’s shares were trading at $7.15.
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 maker of the most popular and colorful fitness-tracking devices.
Fitbit said it also has health and well-being of the data of its users, it will not be used for the Google ads on our website. Google announced that it would Track users have the choice to review, move or delete any of their data.
Google, which was defended its privacy practices following a number of legal probes, and said that it would have to be transparent about the data it collects to communicate.
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