Google makes offer to buy Fitbit

Fitbit's latest smartwatch, the Versa 2, competes with offerings from tech giants like the Apple Watch Series 5

Ever since the launch of the first Fitbit fitness tracker in 2009, wearable technology has been touted as the next big thing (Getty Images)

Google’s parent company Alphabet is reportedly in talks to buy wearable device firm Fitbit.

The acquisition would allow the US technology giant to enter a crowded market for fitness trackers and smartwatches, which rivals like Apple and Samsung have been developing in recent years.

There is no certainty that the negotiations will lead to any deal, sources told the Reuters press agency, speaking on condition of anonymity. They did not reveal what sort of amounts were being offered.

Both Google and Fitbit declined to comment.

But Fitbit shares rose 27 per cent after news of the potential sale emerged, giving the company a market capitalisation of $1.4bn. Alphabet shares rose 2 per cent to $1,293.49.

A deal would come as Fitbit's dominant share of the fitness tracking sector continues to be chipped away at by cheaper offerings from companies such as China’s Huawei and Xiaomi.

Fitbit’s fitness trackers monitor users’ daily steps, calories burned and distance travelled. They also measure floors climbed, sleep duration and quality, and heart rate.

The company has been partnering with health insurers and has been making tuck-in acquisitions in the healthcare market, as part of efforts to diversify its revenue stream.

Analysts have said that much of the company’s value may now lie in its health data.​

Fitness trackers have become increasingly popular in recent years (Getty)

The firm cut its 2019 revenue forecast in July, blaming disappointing sales of its newly launched cheapest smartwatch Versa Lite.

In August, Fitbit said it had signed a contract with the Singapore government to provide fitness trackers and services in a health program it said could reach up to 1 million users.

Additional reporting from agencies