Fitbit is being acquired by Google’s parent company for about $2.1 billion, wading into the crowded and competitive field of wearables and fitness technology. Fitbit is a pioneer in wearable technology, but it’s been shredded by that competition. The company’s market capitalization soared to just under $10 billion after becoming a public company in 2015. Its value this week is well below $2 billion.
When rumours of a potential buyout by Google surfaced earlier this week, Fitbit shares soared almost 30%. The stock jumped another 17% at the opening bell Friday. Alphabet said it will pay $7.35 per share for the company, which were trading at $7.20 each after the deal was announced. “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,” Fitbit co-founder and CEO James Park said in a statement.