Google buys Fitbit for $2.1 billion

(Josep Lago/Getty)

Google has acquired fitness tracking firm Fitbit for $2.1 billion, the firm has revealed.

The acquisition allows the US tech giant to enter the wearable device market, which is currently dominated by rivals like Apple and Samsung.

In a blog post detailing the announcement, Google executive Rick Osterloh described it as an opportunity for Google to develop its Wear OS, Made by Google and Google Fit brands.

“Fitbit has been a true pioneer in the industry and has created engaging products, experiences and a vibrant community of users,” he said.

“By working closely with Fitbit’s team of experts, and bringing together the best AI, software and hardware, we can help spur innovation in wearables and build products to benefit even more people around the world.”

Reports of the deal first emerged three days ago, prompting Fitbit shares to rise by 27 per cent and the firm’s market capitalisation to hit $1.4 billion.

Market analysts claim that much of Fitbit’s value lies in the health data it holds of its customers.

“We have built a trusted brand that supports more than 28 million active users around the globe who rely on our products to live a healthier, more active life,” said James Park, co-founder and CEO of Fitbit.

“Google is an ideal partner to advance our mission. 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. “