Google enters wearables space; acquires Fitbit for $2.1-bn in all-cash deal

Alphabet Inc’s Google has agreed to buy smartwatch maker Fitbit Inc for $2.1 billion in an all-cash deal, a move that could shore up the internet giant’s hardware business while also potentially increasing antitrust scrutiny.

Google will pay $7.35 a share for the San Francisco-based Fitbit, according to a statement on Friday. This represents a 71 per cent premium to Fitbit’s share price before Reuters reported that Google had made a bid on the company on October 28. The acquisition is Google’s second major purchase this year, after it agreed to pay $2.6 billion for Cloud software provider Looker in June.

The deal is likely to attract regulatory scrutiny. State and federal authorities are investigating Google for potential anti-competitive practices related to how it handles consumer data and operates in the digital-advertising market.