Google is acquiring Fitbit for $2.1 billion, the companies announced on Friday. Google plans to expand its investment in the Wear OS ecosystem with the acquisition of Fitbit. The company is acquiring Fitbit for $7.35 per share in cash.

The acquisition is expected to close in 2020, subject to customary closing conditions.

Google recently spent $40 million to buy Fossil’s smartwatch tech, and the Fitbit acquisition is the company’s latest investment in the wearables business.

“Fitbit has been a true pioneer in the industry and has created engaging products, experiences and a vibrant community of users. By working closely with Fitbit’s team of experts, and bringing together the best AI, software and hardware, we can help spur innovation in wearables and build products to benefit even more people around the world,” said Rick Osterloh, the Senior Vice President of Devices & Services at Google.

In a separate announcement, Sameer Samat, the Vice President of Product Management for Wear OS said: “We’re looking forward to collaborating with Fitbit to bring the best of our smartwatch platforms and health applications together, and enabling our partners to build the next generation of wearables.”

Google’s acquisition of Fitbit is quite significant: Wear OS smartwatches have been failing to compete with Apple Watch and the software platform has been falling behind Apple’s watchOS. The acquisition of Fitbit could lead to Google eventually making its own Pixel-branded smartwatches, and maybe even combine the Fitbit platform with Google Fit to be able to better compete with the Apple Watch.

Tagged with Fitbit, Google, Wear OS