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Fitbit wants Pebble's technology, but not its hardware.
The big-name activity tracker will buy its smaller rival's software and firmware intellectual property and absorb some of its staff, but not acquire its smartwatch, Fitbit announced Wednesday morning.
The acquisition had been rumored before Fitbit's announcement.
SEE ALSO:Apple, which doesn't reveal Watch sales data, says Watch sales are great“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,” Fitbit CEO James Park said in a statement. “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.”
Fitbit didn't say how much it paid for Pebble's assets. Earlier reports estimated a $30 to $40 million price. The transaction closed on Tuesday, Fitbit said.
Pebble gained a a chunk of the wearables market with its smartwatch, which took off before Apple and other companies stepped up their health and fitness offerings.
But the company had struggled recently and in March laid off a quarter of its staff.
The acquisition likely means the end of Pebble's wearables.
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