Alphabet Inc (NASDAQ:GOOGL), which owns Internet giant Google, is joining the fast-growing market for fitness trackers and smartwatches.
Fitbit confirmed on Friday it has been offered $7.35 per share in cash by Alphabet, a premium of about 19% to the stock’s closing price on Thursday.
Shares of Fitbit shot nearly 16% higher to $7.15 in early New York trade.
Fitbit shares have gained more than 40% since Reuters reported on Monday that Google had made an offer for the maker of the popular fitness trackers.
While Google has joined other major technology companies such as Apple Inc (NASDAQ:APPL) and Samsung Electronics Co Ltd in developing smartphones, it has yet to develop any wearable offerings.
In a blog post following the announcement, Google’s hardware chief Rick Osterloh explained how the acquisition can help Google advance its ambitions for Wear OS, its software for smartwatches.
“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,” Osterloh said. “Google also remains committed to Wear OS and our ecosystem partners, and we plan to work closely with Fitbit to combine the best of our respective smartwatch and fitness tracker platforms.”
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