Fitbit To Be Acquired By Google For $7.35/Share, 63% Discount From IPO Price

Confirming earlier reports, moments ago Fitbit announced that it has agreed 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 purchase price represents a 63% discount from its $20/share 2015 IPO price (and even more from its opening price of $30.40).

After starting out strong out of the gate, FitBit’s revenue growth first slumped, then stalled at around $1.5 billion.

“More than 12 years ago, we 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,” said James Park, co-founder and CEO of Fitbit, who waited about 4 yours too long before hitting the sell button.

“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.”

“Fitbit has been a true pioneer in the industry and has created terrific products, experiences and a vibrant community of users,” said Rick Osterloh, Senior Vice President, Devices & Services at Google. “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.”

Fitbit was one of the original wearables companies, and has sold more than 100 million devices.

After the transaction, Fitbit will continue to remain platform-agnostic across both Android and iOS.

The transaction is expected to close in 2020, subject to customary closing conditions, including aapproval by Fitbit’s stockholders and regulatory approvals.Qatalyst Partners LLP acted as financial advisor to Fitbit, and Fenwick & West LLP acted as legal advisor.

Fitbit’s stock surged from a little over $4/share when the rumor first hit earlier this week, before being halted at $6.18 this morning ahead of the takeover announcement.