New details on Fitbit’s acquisition of Pebble: the reason would be the former competitor’s software and intellectual property and not the products
Pebble’s software, Fitbit said, would strengthen its position in the wearable device sector. Fitbit recently purchased Pebble, which was now in dire financial straits and saddled with heavy debt.
The Pebble venture had begun as a crowdfunding project in 2012 and had raised more than 10 million in a campaign on Kickstarter. It was, among other things, one of the first smartwatch manufacturers to use electronic ink displays and that connected to smartphones. The financial terms of Fitbit’s purchase agreement have not been officially disclosed, although Bloomberg had estimated the transaction at less than $40 million. Pebble has declared that its venture is definitely over: it will no longer manufacture and sell “smartwatches.”
A fast-growing market
The wearables sector grew 3.1 percent overall in the third quarter of this year that is drawing to a close, and – according to an IDC analysis – Fitbit’s overall market share is around 23 percent. Fitbit also recently declared its intention to partner with Medtronic Plc to empower patients with type 2 diabetes to monitor their glucose levels and physical activity data via special smartwatches. Fitbit’s shares – following its acquisition of Pebble – continue to rise on the stock exchange: yesterday morning they were up 1.1% on Wall Street.