Campaign | Google acquires wearable tech brand Fitbit for $2.1bn

By: Lauren Smartt

4th November 2019

Google is making its biggest consumer electronics acquisition since smart home brand Nest in 2014 after striking a deal to buy Fitbit for $2.1bn (£1.6bn).

Fitbit claims to have 28 million active users of its activity trackers, scales and smart watches, which include its new £200 Amazon Alexa-equipped Versa 2.

Google, which had a high-profile failure in consumer wearables with the cancellation of its Glass spectacles in 2015, had of late limited itself to developing operating system Wear OS and fitness tracking app Google Fit.

David Coombs, head of strategic services, Cheil UK (which works for Samsung), observed: “Google haven’t had the most success in wearable tech over the years, so it is no surprise that they are trying to get ahead by buying one of the biggest wearable tech companies out there.

“According to IDC, wearable technology is growing at 16% year-on-year – that’s double digit growth to counter the double digit decline of mobile. Winning the smartphone battle is no longer enough, and the purchase of Fitbit provides a promising opportunity for Google to make serious headway in the wearables market, going up against the likes of Apple, Amazon and Samsung.

“It has the potential to benefit both sides, giving Google a platform to build an Android powered ecosystem and giving Fitbit a way to build more smarts into their wearables.”

Read the full article on Campaign Live here