Google has announced that will buy Fitbit for $2.1 billion. Fitibt has been declining in recent years, and Google wants to get stronger in the smartwatch market. Fitbit said that Google offered $7.35 / share, 19% above the closing price of the shares in Thursday's meeting last week. Fitbit is known worldwide for fitness bracelets and smartwatches, and became very popular in 2016 when it bought Vector Watch for $15 million.

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According to Reuters, the Alphabet group (of which Google is part of) has made an offer to Fitbit, and since then the shares of the smartwatch and smart bracelet manufacturer have increased by 40%.

In a statement, Fitbit says that health data of its users will not be used in Google ads. The entire procurement process should be completed by 2020.

Google has not succeeded in imposing itself on the smartwatch market, although it has launched the WearOS operating system, and the acquisition of such a major player can change everything. For Fitbit, joining Google can give it a chance to grow their sales significantly.

Fitbit has 28 million users worldwide, 5 million more than at the end of 2016 and four times more than in 2014. Fitbit says that in its history it has sold over 100 million devices.

IDC data show that last quarter Fitibit sold 3.5 million portable devices, which puts it fourth in volume, after Xiaomi, Apple and Huawei. The market share is 10% and deliveries increased by 32% compared to 2018.

The company is not in a great situation because business has declined in recent years. Recently it was written that Fitbit could find a buyer, with the names being Google, Apple or Amazon.

Fitbit had sales below expectations with the cheaper model Versa Lite, launched in March, and at the end of July it lowered its revenue estimates for the entire year. Thus, estimates range from $ 1.43 to $1.48 billion, 90 million less than it was estimated a few months ago.

Fitbit was listed in June 2015, the maximum share price was $ 51.64, on August 5, 2015, and the historical low was $ 2.81, in August 2019. Last year's average shares price was $4.92 .