Fitbit is putting the final touches on a deal to acquire Pebble, according to a report from The Information (via TechCrunch). The original report indicates that Fitbit will be paying a “small amount” for the well-known smart watch maker, which has been struggling recently with a downturn in investments that forced it to cut its staff by 25 percent earlier this year. The Information also indicates that the deal is more about Fitbit acquiring Pebble’s intellectual property and software assets, rather than the product itself, noting that Pebble and its products would be “closed down over time.”
Sources for TechCrunch indicate that Fitbit is expected to be paying between $34 million and $40 million for Pebble, which would reportedly “barely cover their debts.” Sources also told TechCrunch that Pebble’s CEO Erick Migicovsky previously turned down two offers last year — one from watch maker Citizen for an astronomical $740 million, and one from Intel for $70 million, prior to the release of the Pebble 2. Migicovsky also revealed earlier this year that his company had gone into debt to the tune of $28 million after struggling to raise more venture financing. For its part, Fitbit has also been struggling financially, with its stocks having dropped to less than one fifth of their original value in the past year; a drop attributed to “less-than-impressive” financial results and reduced consumer interest in wearable devices.