Pagemill Advised Vector Technologies on Acquisition to Fitbit
San Francisco, California - January 10, 2017
Fitness band maker Fitbit completed a second acquisition in two months aimed at making a push into the smartwatch market.
Watch maker Vector Watch confirmed it has been acquired by Fitbit. Financial terms of the deal were not disclosed by Vector. The company says they will continue to maintain the functions and features of its watches while a part of Fitbit.
"We believe this is an important milestone as a moment when we will start building other new and amazing products, features and experiences, incorporating our unique technology and knowhow with Fitbit’s experience and global community," read a statement from Vector Watch.
Fitbit could not be immediately reached for comment. Shares of Fitbit were down 4.5% in morning trading.
Last month, Fitbit reached a deal with smartwatch maker Pebble to acquire assets related to software and firmware development. As with the Pebble deal, the Vector deal excludes hardware.
"As with our recently announced acquisition of Pebble assets, Vector brings valuable industry expertise that will help accelerate the development of new products, features and functionality," said Fitbit in a statement confirming the deal.
Smartwatches generated early buzz when the first wave of devices from companies including Pebble, Apple and Samsung launched. However, consumers haven't been convinced of the need to own a smartwatch.
During the third quarter, smartwatch shipments plunged more than 51%, according to research firm IDC.