Google has recently announced that it is buying the popular wearable devices manufacturer Fitbit for $2.1 billion. The move is expected to give Google a strong foothold in the wearables industry, which the tech giant currently struggles to break into.
In a blog post, Google' Senior Vice President of devices and services Rick Osterloh mentioned that this deal is an opportunity for Google to launch 'Made by Google' wearables into the market.
The announcement came just a few days after a report from Reuters claimed that Google was in talks to buy Fitbit.
A press release by Fitbit stated that the health and fitness data of the users will not be used for Google Ads and the privacy of users will be maintained. It also stated that the company would continue to stay "platform agnostic" across Google's Android and Apple's iOS.
The deal is a win-win for both companies. When it comes to Google, the company failed to produce any large impact in the wearables industry, although it was the first to identify the impact of wearable devices and the difference they could make. Fitbit's success and stronghold in the market will give Google a much-needed push. On the other hand, Google's talented and skilled development team could make Fitbit's smartwatches smarter.
Fitbit's co-founder and CEO James Park views this deal as an opportunity to grow his company's reach globally.
"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", he said.
Fitbit has said that the deal is likely to close in 2010 because some approvals and conditions are still pending.