The wearable space looks to be in the middle of a consolidation phase with Fitbit set to acquire smartwatch maker and Kickstarter poster child Pebble. The information reports that the cost of the acquisition is a “small amount” and the rumors circulating are for a figure under $50 million.
The deal will see Pebble’s current slate of products closed down. Fitbit will absorb the intellectual property and other assets. There is no word on any staff redundancy.
“We don’t comment on rumors or speculation,” says a spokesperson from Fitbit
This is not the first time there has been talk of an acquisition of Pebble. Back in 2015, Pebble rebuffed an offer from watch maker Citizen for a massive $740 million. The deal failed just before the launch of the Pebble 2. The next attempt was by Intel for around $70 million a little after. It looks like both of those companies dodged a bullet in what would have been a large write-down.
Pebble has had an extremely challenging 2015 and was in some trouble financially with its debt funding and loans. It also laid off around a quarter of its staff to stay afloat.
Even Fitbit is not free of challenges due to depressed wearable sales. Some credit the Apple Watch for causing both of these companies current woes. It remains to be seen what Fitbit will truly gain from the Pebble purchase.