Google is buying wearables maker Fitbit in a deal worth $2.1 billion, the internet search giant announced on Friday morning.
That $2.1 billion is a premium being paid for Fitbit stock, which as of Friday morning was trading below the $7.35 per share that Google is paying.
The reason for the acquisition is simple: Google wants a stronger foothold in the wearables industry, which is dominated by Apple’s Watch and Fitbit’s various devices.
“Over the years, Google has made progress with partners in this space with Wear OS and Google Fit,” Rick Osterloh, Google’s senior vice president of devices and services, said in a blog post announcing the purchase. “But we see an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market .”
Fitbit cofounder and CEO James Park sees Google’s acquisition as a means of expanding Fitbit’s reach.
“Google is an ideal partner to advance our mission,” he said. “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.”