Google’s parent company Alphabet has made an offer to purchase the popular fitness wearables company Fitbit, Reuters is reporting. The company may be eyeing a move into the wearables division, a space that is stacked with competition from companies like Apple and Samsung.
The deal is not complete and there is no guarantee that it will move forward. It is not known what amount Google offered to acquire Fitbit.
The news caused Fitbit’s stock to skyrocket; it was up around 27 percent by Monday afternoon, according to CNBC. The surge added over $330 million to the company’s market cap, reaching around $1.5 billion. Shares in the company are currently up 12 percent on the year.
The acquisition could see Alphabet making a larger play to expand more into the health and fitness sector. The company recently hired former Geisinger Health CEO David Feinberg in a move to shore up business in that area.
Fitbit has been struggling: Before the news today (Oct. 28), it had lowered its guidance for the year, singling out lower-than-expected sales of its new watch.
Recently, Fitbit executive Adam Pellegrini announced he was leaving the company to join CVS and spearhead its initiatives in consumer health. He will “lead the ideation and incubation of consumer-focused health products and services that drive enterprise value and growth,” according to a memo announcing the move.
Earlier this year, Fitbit introduced a $10 monthly premium subscription service. If customers don’t want to pay for the service on a monthly basis, they can purchase a year’s subscription for $80. The company has also partnered with some healthcare operations on the venture. Users will receive “custom insights” into their health and will also have access to nine guided health and fitness programs, per the report.
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