Google announces signing definitive agreement for acquisition of Fitbit, in order to make its Android platform more attractive to consumers.

San Francisco: Google, a global technology company specializing in internet-related services and products, is acquiring Fitbit, the leading wearables maker. The buyout is expected to close by 2020. The acquisition is an all-cash deal totaling to $2.1 billion. With this acquisition, Google will be able to extend its ambient computing hardware strategy, where the company aims to be a part of users’ lives wherever they are. According to the acquisition deal, Google will become the sole owner of Fitbit, owning its IP and handling all hardware and software development and distribution. Google stated that the data obtained and processed by Fitbit’s devices will remain in appropriate datacenters and will not be shared with any third-party platforms.

Co-founder and CEO of Fitbit stated that, “More than 12 years ago, we had set an audacious company vision – to make everyone in the world healthier. Today, I’m incredibly proud of what we’ve achieved towards reaching that goal. 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. 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. I could not be more excited for what lies ahead.”

Vice President, Devices & Services of Google further said that, “Fitbit has been a true pioneer in the industry and has created terrific products, experiences and a vibrant community of users. We're looking forward to working with the incredible talent at Fitbit, and bringing together the best hardware, software and AI, to build wearables to help even more people around the world.”

According to TechSci Research, acquisitions have always been Google’s key growth strategies. Google’s sustained focus on expanding its business through strategic acquisitions and investments will drive its growth over the long run. Furthermore, Fitbit’s buyout will help Google fortify its competitive edge against rivals like Apple.

Google has been struggling over the years trying to break into the wearables market with its Wear OS platform, but it is expected that with this acquisition the company will finally get a chance to make a real impact. Fitbit’s hardware chops will give Google a much stronger foundation to build on for future Android-integrated wearables devices. Also, the company’s focus on fitness tracking can be integrated into existing fitness apps of Google which can serve as a strong alternative to the Apple Watch’s deep fitness tracking integration with the iPhone.

According to the report published by TechSci Research, “Global Smartwatch Market By Type (Classic, Standalone and Extension), By Application (Personal Assistance, Wellness, Medical/Health, etc.), By Operating System (Watch OS, Android, Tizen, RTOS, etc.), Competition Forecast and Opportunities, 2012-2021”, the global market for smartwatch is projected to grow at a CAGR over 25% during 2016-2021. Personal assistance application dominated global smartwatch market, on account of increasing usage of third-party application in connected devices and rising demand for technologically advanced products. North America was the major demand generator for smartwatches across the globe, due to increasing number smartphone users, growing shift towards standardized connectivity coupled with increasing usage of smart functions.

According to another TechSci Research report, “India Smart Band Market By Product Type (Fitness Band and Smart Watch), By Category (Hand and Others), Competition Forecast & Opportunities, 2013 – 2023”, the India smart band market is forecast to grow at a CAGR of 41% by 2023, on account of growing health awareness, rising population of tech-savvy people and booming Internet of Things (IoT) market. With technological advancements and shrinking chip size, price of smart bands is expected to decline over the coming years, which in turn, would aid country’s smart band market. The trend of smart watches as a fashion accessory, in addition to rising popularity of hybrid watches, increasing penetration of internet and growing e-commerce industry are anticipated to positively influence the smart band market growth in India during the forecast period.