Google to buy Fitbit for $2.1 billion

A trader works at his post as the logo for wearable device maker Fitbit Inc. is displayed on a screen on the floor of the New York Stock Exchange (NYSE) as begins public trading in New York, U.S., October 28, 2019. REUTERS/Brendan McDermid

(Reuters) – Alphabet Inc-owned (GOOGL.O) Google will buy wearable device maker Fitbit Inc (FIT.N) for $2.1 billion, as the search giant looks to enter the fast-growing market for fitness trackers and smartwatches.

Fitbit said on Friday it had been offered $7.35 per share in cash, a premium of about 19% to the stock’s closing price on Thursday.

Fitbit shares have gained more than 40% since Reuters exclusively reported on Monday that Google had made an offer for the maker of the popular colorful fitness trackers.

While Google has joined other major technology companies such as Apple Inc (AAPL.O) and Samsung Electronics Co Ltd (005930.KS) in developing smart phones, it has yet to develop any wearable offerings.

Qatalyst Partners LLP acted as financial adviser to Fitbit, while Fenwick & West LLP was its legal adviser.

Reporting by Noor Zainab Hussain and Akanksha Rana in Bengaluru; Editing by Anil D’Silva

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