Fitbit, the company behind fitness products that help you stay motivated and improve your health by tracking your activity, made a huge announcement on Wednesday.
The company has bought software assets of Pebble Technology in a deal that unnamed sources said was for less than $40 million. In the deal, Fitbit will not receive the hardware of the smartwatch pioneer.
According to Bloomberg’s sources, Fitbit mainly wants Pebble’s software engineers and testers and the intellectual property behind its operating system, watch apps, and cloud services. Pebble’s debt and other obligations reportedly exceed the purchase price. Its other assets, including product inventory and server equipment, may be sold off separately.
Fitbit is “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,” said CEO and co-founder James Park said in a press release.
Disclaimer: We have no position in Fitbit Inc. (NYSE: FIT) and have not been compensated for this article.