Google to buy Fitbit for $2.1bn
Google's parent company, Alphabet, has agreed to buy smartwatch maker Fitbit for $2.1bn in cash.
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Under the terms of the deal, which is expected to close next year, Google will pay $7.35 per share in cash for Fitbit.
Fitbit co-founder and chief executive officer James Park said: "Google is an ideal partner to advance our mission. With Google’s resources and global platform, Fitbit will be able to accelerate innovation in the wearables category, scale faster, and make health even more accessible to everyone. I could not be more excited for what lies ahead."
Rick Osterloh, senior vice president of devices and services at Google, said: "Fitbit has been a true pioneer in the industry and has created terrific products, experiences and a vibrant community of users.
"We're looking forward to working with the incredible talent at Fitbit, and bringing together the best hardware, software and AI, to build wearables to help even more people around the world."
At 1405 GMT, Fitbit shares were up 16% at $7.18.
RBC Capital Markets said this was a "logical strategic step" for Google to continue expanding into hardware.
"We believe Fitbit may be a good strategic fit for Google given that Google's resources and global platform could accelerate innovation in wearables, scale more quickly, and make health more accessible," it said.