Alphabet’s Google will buy Fitbit for $2.1 billion, as the most prominent Web search firm looks to tackle Apple and Samsung in the crowded market for fitness trackers and smartwatches.
Google stated Friday that it sees an opportunity to introduce its wearable gadgets and invest more in digital health. The acquisition will also bring a rich trove of health information gathered by millions of Fitbit’s units.
Fitbit’s fitness trackers and other units monitor users’ daily steps, energy burned, and distance traveled. They also measure floors climbed, sleep duration and quality, and heart rate.
Fitbit’s share of the fitness tracking sector has been warned by deeper-pocketed firms such as Apple and Samsung Electronics as well as cheaper choices from China’s Huawei Technologies and Xiaomi.
Xiaomi dominates the global wearables marketplace, with a 17.3% market share in the second quarter of 2019, followed by Apple. Fitbit holds 10% of the industry, according to data from market analysis agency International Data.
Fitbit, which helped establish the wearable gadgets craze, has been collaborating with health insurers and has been making tuck-in purchases in the healthcare sector, as a part of efforts to diversify its revenue flow. Analysts have stated that a lot of the company’s value may now lie in its health data.
U.S. antitrust governors have little reason to question Alphabet’s plans to buy Fitbit, however, that doesn’t imply that U.S. officials, sponsored by a bevy of anti-Google legislators, won’t give the proposed acquisition further scrutiny.
Fitbit had raised privacy issues previously: In 2011, the sexual activity of people utilizing the well being and fitness tracker was found to be publicly accessible online.