Sources speaking to Reuters have alleged that Fitbit is in talks with the investment bank, Qatalyst Partners, about the possibility of exploring a sale. Fitbit is speaking with Qatalyst to see whether it would hold talks with companies that could potentially acquire Fitbit. The news comes as Fitbit struggles to get a foothold in the smartwatch market, following successes with its health monitors.
The sources reiterated the point that Fitbit has not yet decided to go ahead with a sale. The talks have been going on for some weeks according to the sources who claimed that Qatalyst has been trying to persuade Fitbit to explore its options. Some of the options include attracting acquisition interest from the likes of Alphabet or private equity firms.
Fitbit shares reacted positively to the news that the company was in talks with the price rising 22% to $4.48 per share. With shares this high, the company has a market capitalisation of over $1.1 billion.
While the rumours have been enough to affect the price of shares, the matter is still strictly confidential so the firm isn’t officially commenting on the matter. Neither Fitbit, nor Google, nor Qatalyst responded to Reuter’s request for comment on the issue.