Google is known for making power moves when it comes to acquisitions, and they’ve just done it again. The tech giant announced it would acquire Fitbit at $7.35 per share in an all-cash deal totaling $2.1 billion. According to a press release from Fitbit, we can expect the deal to close sometime in 2020 assuming US regulators are on board with the decision.
But as is the case with all things Google-related, many people are worried about the security of their data. And Google made sure to address this right out of the gate.
Rick Osterloh, Google’s Senior VP of devices and services wrote in a company blog post that Google would be transparent about the data they collect and that they’d never sell personal information to third parties. Under Google, Osterloh promised Fitbit health and wellness data would not be used for Google ads.
As long as their promises can hold up, Google will finally be able to fill a massive gap in their wearables department—as a strong contender against Apple at that.
According to the IDC, Apple moved some 16.2 million wearable devices in quarter four of 2018, capturing 27.4 percent of the total wearables market. Fitbit came in at number four in terms of fourth quarter shipments.
Analysts weren’t surprised by the acquisition and neither was the general public. Rumors surfaced just days before the announcement was made, and on top of that, Google has been investing in health products for quite some time now.
Google already has a wearable operating system and just bought a big chunk of Fossil’s smartwatch IP, so it’s probable that the Fitbit acquisition was the final piece of this puzzle.