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Google Acquires Fitbit for $2.1B

Google acquired Fitbit for $2.1 billion on November 1, 2019. The acquisition will allow Google to expand into the healthcare sector by gaining access to Fitbit's fitness trackers and smartwatches, which are sold in over 100 countries. It also aims to bolster Google's hardware business and capture the growing market for smartwatches. The deal is being reviewed for privacy issues around Google obtaining customers' health data from Fitbit devices.

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Prasnth Kumar
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349 views1 page

Google Acquires Fitbit for $2.1B

Google acquired Fitbit for $2.1 billion on November 1, 2019. The acquisition will allow Google to expand into the healthcare sector by gaining access to Fitbit's fitness trackers and smartwatches, which are sold in over 100 countries. It also aims to bolster Google's hardware business and capture the growing market for smartwatches. The deal is being reviewed for privacy issues around Google obtaining customers' health data from Fitbit devices.

Uploaded by

Prasnth Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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22nd January, 2020 Dealscope

Acquirer Target
Date of Announcement
1st November, 2019

Deal Consideration
$2.1 bn

Google Inc. Fitbit Inc.


Google Inc., (Headquaters – Mountain View, California)
Fitbit Inc. (Headquartered in San Francisco, California), a fitness
American search engine company, founded in 1998 by Sergey
tracker company founded in 2007, use sensors and wireless
Brin and Larry Page, that is a subsidiary of the holding company
technology to bring amazing experiences to fitness and health.
Alphabet Inc. More than 70 percent of worldwide online search
Fitbit has launched successful products in various categories like
requests are handled by Google, placing it at the heart of most
Trackers Smartwatches Smart scales Wireless headphone.
Internet users’ experience.

Market Capitalisation $1.02 T Advisors Market Capitalisation $1.76 bn Advisors


Enterprise Value $914.7 bn Enterprise Value $1.33 bn
Revenue $155 bn Lazard Revenue $1.50 bn Qatalyst Partners LLP
EV/EBITDA 20.76x Qatalyst Partners LLP EV/EBITDA -10.30x Fenwick & West LLP

Deal Rationale
With the acquisition of Fitbit, Google aspires to bring together “the best AI, software and hardware” in order to “spur
innovation in wearables and build products to benefit even more people around the world”. Fitbit resonates with the
Google’s vision for “ambient computing,”, gives it more technological armour to compete with Apple Watch. Moreover,
Fitbit could help Google vault into the $3.5 trillion health-care space.
• Fitbit products are carried in approximately 39,000 retail stores and in 100+ countries around the globe helping Google expand in the
healthcare sector. 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.
• The Fitbit acquisition is expected to bolster Google’s hardware business and capture huge market for it’s upcoming Pixel watch. Fitbit
operates in the fitness tracker and smartwatch markets, which together present a revenue opportunity of over $90 billion.
• Fitbit’s diverse line of innovative and popular products include Fitbit Charge 3TM, Fitbit Inspire HRTM, Fitbit InspireTM and Fitbit Ace
2TM activity trackers, as well as the Fitbit IonicTM and Fitbit VersaTM family of smartwatches, Fitbit FlyerTM wireless headphones,
and Fitbit Aria family of smart scales.

Deal Points
Fitbit, Inc. announced on 1st November that it had entered into a definitive agreement to be acquired by Google LLC for
$7.35 per share in cash, valuing the company at a fully diluted equity value of approximately $2.1 billion.
• The completion of this acquisition will give Google control of vast amount of customer’s health data. The deal is being reviewed by the
US Department of Justice to address this privacy standpoint.
• The transaction is expected to close in 2020, subject to customary closing conditions, including approval by Fitbit’s stockholders and
regulatory approvals.

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