Fitbit to Be Acquired by Alphabet

Fitbit Inc. said on Friday that its agreed to be acquired by Google's parent company Alphabet Inc. for $2.1 billion.

Google will acquire the maker of wearable fitness trackers for $7.35 a share in cash. The deal is expected to close in 2020, the company said.

The San Francisco-based company lowered its full-year-revenue outlook in July after weaker-than-expected sales of its new smartwatch model, Versa Lite.

Fitbit started selling smartwatches in addition to its fitness trackers to compete with popular offerings from Apple Inc. and Samsung Electronics Co.

Still, the company reported narrower losses in the second quarter as sales of fitness trackers jumped 51% and the health division showed some strength. Fitbit is scheduled to report third-quarter earnings on Nov. 6.

Reuters first reported that Google owner Alphabet had made an offer to buy Fitbit.

(END) Dow Jones Newswires

November 01, 2019 09:25 ET (13:25 GMT)

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