- Qatalyst Partners LLP acted as financial advisor to Fitbit, and Fenwick & West LLP acted as legal advisor
- Fitbit had reported revenues of $314 million for Q2 2019
“Fitbit has been a true pioneer in the industry and has created terrific products, experiences and a vibrant community of users. 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,”said Rick Osterloh, SVP, Devices & Services at Google.
On Google acquiring Fitbit, James Park, co-founder and CEO of Fitbit said, “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’s revenue in Q2 2019
Fitbit had reported revenue figures of $314 million in Q2 2019. The company had shared that devices it sold increased 31 per cent year-over-year to 3.5 million. Average selling price, as per Fitbit, decreased 19 per cent year-over-year to $86 per device due to the introduction of more affordable devices.
The company was expecting increase in devices sold and a decline in average selling price, each year-over-year for Q3 2019. Fitbit’s official statement read, “We expect revenue to decline 15 per cent to 10 per cent year-over-year and to be in the range of $335 million to $355 million.”
Shifted manufacturing operations outside of China
The smart wearables company had also recently said that it was sifting its manufacturing base outside China. As a result, starting in January 2020, the company expects its smartwatches and trackers to no longer be of Chinese origin.
“In 2018, in response to the ongoing threat of tariffs, we began exploring potential alternatives to China. As a result of these explorations, we have made changes to our supply chain and manufacturing operations and have additional changes underway. Based on these changes, we expect that effectively all trackers and smartwatches starting in January 2020 will not be of Chinese origin,” said Ron Kisling, CFO of Fitbit in September 2019.
“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,” added James Park.