Bloomberg reports that Fitbit is on track to buy software assets from Pebble. According to Bloombergs sources, the deal will be about Pebbles intellectual property in the form of OS, watch apps, and cloud services.
Additionally, Fitbit would also hire Pebbles software engineers and testers. As much as 40% of Pebbles engineers have received job offers from Fitbit already. Those who dont will get severance packages.
The price Fitbit would pay for the assets would be no less than $40 million. Pebbles debt and obligations exceed that and the company will likely cover them with selling its product inventory and server equipment.
Pebbles woes come from a staggering decline in the smartwatch market with shipments marking a fall of 52% in Q3 of 2016 according to IDC stats. Pebbles devices will likely be discontinued after the acquisition.
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