Fitbit is reportedly set to acquire Pebble for an undisclosed amount of money.
According to a report in The Information , the deal is near but the terms have not been finalized, but it is apparently “thought to be for a small amount.” Fitbit is not just seeking additional market share in the wearable space but desires Pebble’s operating system and intellectual property. The report also indicates that the Pebble brand will eventually be phased out once the papers are officially signed.
Pebble, who laid off 25 percent of its total staff in March, has been rumoured to be in financial difficulty and has been looking for a buyer for the past year.
Fitbit and Pebble declined to comment on the report.
The original Pebble smartwatch, the company’s first product, was backed by 68,929 for a total pledge amount of $10,266,845 USD on Kickstart in 2012. The company has since released a number of other wearable products, most recently the Pebble Time 2, Pebble 2 and Pebble Core.
Pebble’s founder, Eric Migicovsky, was not only born in Vancouver, but he also graduated from the University of Waterloo systems design engineering program. Migicovsky first founded Allerta, which created a watch for BlackBerry devices. He then went on to start Pebble, which in 2013 raised over $26 million in funding from various investors, including Charles River Ventures. The company also has an office in Waterloo, Ontario.