Google parent Alphabet has acquired Fitbit, the San Francisco-based company behind several wearable fitness devices, for $2.1 billion, the companies announced on Friday.
The deal values Fitbit at $7.35 per share. Fitbit’s stock price surged on Friday morning, increasing 15% to $7.14 per share an hour into trading. This comes after it had already made significant gains since Monday, when Reuters reported Google was looking to acquire the company.
Fitbit, which offers a variety of smartwatches and fitness tracking devices, went public in 2015 at about $30 per share, and jumped to an all-time high of $51.90 per share a few months later.
The buyout pushes Google into a sector tech giants like Apple have increasingly explored in recent years. Apple CEO Tim Cook has, on multiple occasions, pointed to the Apple Watch’s ability to help users pick up irregular heartbeats, among other fitness features.
“Google aspires to create tools that help people enhance their knowledge, success, health and happiness,” Google SVP of devices and services Rick Osterloh said in a statement. “This goal is closely aligned with Fitbit’s long-time focus on wellness and helping people live healthier, more active lives.”
Google, perhaps looking to proactively assuage privacy concerns from its users, said it would not sell data collected from Fitbit.
“We understand this is a big responsibility and we work hard to protect your information, put you in control and give you transparency about your data,” Osterloh continued. “Similar to our other products, with wearables, we will be transparent about the data we collect and why. We will never sell personal information to anyone. Fitbit health and wellness data will not be used for Google ads. And we will give Fitbit users the choice to review, move, or delete their data.”
Alphabet’s stock climbed about 0.5% on Friday morning to $1,264.50 per share.