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Google Rivals Apple, Samsung On Wearable…To Acquire Fitbit For $2.1bn

Tech giant Google on Friday announced it was shelling out $2 billion to acquire Fitbit, a move that will rival Apple and Samsung in the wearable market.

Fitbit’s acquisition makes it Googles first major venture into the wearable market and would see the tech company taking over Fitbit’s $1.6 billion market capitalisation.

Reports on Friday said Fitbit’s stock soared after Google announced it was acquiring the California-based company.

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Fitbit’s range of products include fitness devices such as activity trackers and wireless-enabled devices that measure number of steps walked, heart rate, quality of sleep and steps climbed, among others.

The company confirmed on Friday that Google had offered it $7.35 per share in cash, which prompted its stock to soar by 17 percent after already gaining more than 40 percent following earlier reports of the planned acquisition.

Google plans to expand in the wearable hardware market after finalizing the acquisition of Fitbit in 2020.

The deal will see Google competing head-on with smart phone manufactures Apple and Samsung who have been dominating the wearable market.

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