Fitbit Inc (NYSE:FIT) is acquiring Pebble for quite the discount.
It wasn’t so long ago that Pebble was considered to be among the most popular creators of smartwatches in the industry thanks to its affordable price and innovation. The startup showed plenty of potential early on, launching two very successful Kickstarter campaigns that netted $10 million and $20 million respectively for the company’s first two generations of products.
Now, Fitbit will be buying everything that Pebble has to offer for a meager $23 million, which is less than what the company raised in its first two Kickstarter campaigns. Perhaps even more shocking is the fact that Pebble received a takeover offer of $740 million from Citizen, but the company believed that its value knew no bounds and it would easily eclipse the valuation over the years.
The following year, Pebble was in a state of free fall and the company’s new offer from Citizen was all the way down to only $70 million. Now, Fitbit will get its services for quite the discount.
The move will likely help Fitbit enhance its own products as it will learn the technology and trade secrets behind Pebble’s effective smartwatches. Such a move may prove to be of great importance now that we live in a time where everyone seems to have a smartwatch, and many companies are in the running to put their product on your wrist.
FIT shares grew 2.7% Thursday.
