Rumors were true it seems. Fitbit revealed today that it had bought smartwatch maker Pebble. The deal was signed on December 6th.
The press release published today indicates that the leader in the fitness and health connected devices had acquired Pebble’s software and intellectual properties.
It also indicates the termination of Pebble’s line of hardware. Support for existing devices will continue but no new models will be created.
“With basic wearables getting smarter and smartwatches adding health and fitness capabilities, we see an opportunity to build on our strengths and extend our leadership position in the wearables category,” said James Park, CEO and co-founder of Fitbit. “With this acquisition, we’re well positioned to accelerate the expansion of our platform and ecosystem to make Fitbit a vital part of daily life for a wider set of consumers, as well as build the tools healthcare providers, insurers and employers need to more meaningfully integrate wearable technology into preventative and chronic care.”
From Kickstarter project to big player in the market
Pebble got the attention of the public eye when it made became Kickstarter’s most funded project by collecting more than 10 million dollars in just 30 days.
Even when other giants like Apple or Samsung joined the market of smartwatches, Pebble still maintained its solid position in the market by offering reliable hardware and for the right price.
Fitbit expands its market growth
It looks like the momentum for Fitbit devices is far from losing steam. Just this year, the company launched four new devices. Fitbit reported revenues of $712M for Q4 2015 and a forecast of $1.86B for 2015.
A report published by Argus Insights in 2015 claims that Fitbit had a massive 68% share of the fitness tracker market.
Thus, the acquisition of Pebble should secure their position as the leader in wearable devices for many years ahead.