Google to buy Fitbit

Google has agreed to buy Fitbit for $2.1 Billion in a move giving the US tech giant entry into the wearable technology space. The move comes with Google seeking to expand beyond its core the business of online search into hardware, and with Fitbit struggling against rivals including Apple.

While Fitbit was among the first to popularize fitness bands, it has lost ground in recent years to rivals. A survey by research firm IDC for the second quarter of 2019 found Fitbit in fourth place in a market led by China's Xiaomi leading the global market, followed by Apple -- which makes the leading smartwatch -- and Chinese-based Huawei.

Fitbit has introduced its own smartwatch in 2017 but it has failed to keep pace with the Apple Watch. Google, which faces pressure from regulators around the world over its dominance of internet search has been boosting its hardware offerings, including a line of Pixel smartphones and tablets, along with connected speakers.

Fitbit’s fitness trackers monitor users’ daily steps, calories burned and distance traveled. They also measure floors climbed, sleep duration and quality, and heart rate. The company has been partnering with health insurers and has been making tuck-in acquisitions in the healthcare market, as part of efforts to diversify its revenue stream.