Alphabet, Google's parent company, will acquire Fitbit for approximately $2.1 billion, according to a Nov. 1 news release from Fitbit.
Per the deal, Google will pay $7.35 per share in cash. With the announcement of the acquisition, Fitbit's stock spiked 17 percent, CNBC reports. Additionally, Alphabet's stock was up 0.6 percent. Fitbit expects the transaction to close in 2020, subject to customary closing conditions, including the approval of the company's stockholders and regulatory approvals.
Over concerns with patient privacy, Fitbit said that consumers' health and wellness data will not be used for Google ads.
Google hopes to advance its wearables division with the acquisition.
"By working closely with Fitbit's team of experts, and bringing together the best AI, software and hardware, we can help spur innovation in wearables and build products to benefit even more people around the world," Google's hardware chief Rick Osterloh said in a blog post, according to CNBC. "Google also remains committed to Wear OS and our ecosystem partners, and we plan to work closely with Fitbit to combine the best of our respective smartwatch and fitness tracker platforms."