Fitbit close to acquire smartwatch maker Pebble in $40 million

Company - Pavan Pandey - Dec 02,2016

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fitbit close to acquire smartwatch maker pebble in 40 million dollar

Fitness wearable device manufacturer Fitbit is close to takeover the smartwatch maker Pebble Technology Corporation.

The fitness band market leader, Fitbit, an American Consumer Electronics Company is near a deal to purchase smartwatch maker Pebble. The cost of acquisition is expected to be between $34 million and $40 million. The deal has reached its closing phase but has not been finalized.

The Fitness band maker will receive Pebble’s intellectual property (IP) and new wearable expertise following the deal’s cessation. This step is taken by Fitbit Company for expanding its product range into the fitness band market. The manufacturing of Pebble’s smartwatches is unlikely to continue after the acquisition of the company; whereas, several Pebble employees are likely to join Fitbit.

Earlier this year, Pebble launched a new device, called Core, this device can stream music from digital music service Spotify and can also track workouts using GPS. According to the reports, Pebble Technology Corporation announced it was laying off 25% of Pebble employees in March. Pebble has been searching a buyer for quite some time. Several insiders reported that American company Fitbit was paying a low value for the Silicon Valley start-up, which has resisted financially in spite of another $12.8 million Kickstarter campaign in the month of June.

Pebble was once a champion of Kickstarter, crunching every record across the board. A pioneer company in the wearable-technology market, the first smartwatch of Pebble was launched in 2012, two years before the Apple Watch was declared. Fitbit’s key curiosity is in Pebble’s software platform, PebbleOS. This software platform of has one of the biggest app catalogs of the entire wearable device and can pair up with iPhones and Android devices.