Fitbit fitness tracker manufacturer management is currently considering selling a business. The Reuters reporting agency claims that this step was prompted by a decrease in July of the sales forecast for 2019 due to the not-so-successful debut of the cheapest 160-hour Versa Lite smartwatch in the company’s assortment.
According to Reuters sources, Fitbit held talks with Qatalyst Partners investment bank about whether it should attract potential buyers. Fitbit has not yet decided to sell the business, and there is no certainty that it will do so. Qatalyst Bank is trying to convince Fitbit to explore its options by taking a few weeks to do so, arguing that it could attract interest in the acquisition by Alphabet Holding, which includes Google, as well as private investment companies.
Following reports of Fitbit’s possible plans, the company’s shares rose 22% to 4.48, and its market capitalization now exceeds 1.1 billion.
In August, Fitbit announced it had signed a contract with the Health Promotion Board under the Singapore Ministry of Health to supply fitness trackers and services under a health program that it said could reach up to 1 million users.