Fitbit Inc (NYSE:FIT) announced that it has acquired specific assets of Pebble, including key personnel and intellectual property related to software and firmware development. The acquisition excludes the company’s hardware products.

With this acquisition, Fitbit adds deep industry expertise in platform development that complements the company’s core discipline of innovative health and fitness features. The additional resources will facilitate the faster delivery of new products, features and functionality while introducing speed and efficiencies to develop the general purpose utility consumers value in a connected device. The acquisition will also accelerate the development of customized solutions and third party applications for Fitbit Group Health customers and partners, including researchers, employers and providers.

“With basic wearables getting smarter and smartwatches adding health and fitness capabilities, we see an opportunity to build on our strengths and extend our leadership position in the wearables category,” said James Park, CEO and co-founder of Fitbit. “With this acquisition, we’re well positioned to accelerate the expansion of our platform and ecosystem to make Fitbit a vital part of daily life for a wider set of consumers, as well as build the tools healthcare providers, insurers and employers need to more meaningfully integrate wearable technology into preventative and chronic care.”

As the wearables market leader, Fitbit has developed a large global community of users by combining the power of technology with insights, motivating millions of people reach their health and fitness goals. Understanding that there is no one-size-fits-all in health and fitness, Fitbit gives consumers choices with its portfolio of wearable devices, features and accessories as part of an overall connected health platform so that users can seamlessly integrate wearables into their lives.

With Android usage accounting for nearly 90 percent of smartphone OS market share globally1, the ability to deliver consumers cross-platform devices is a key competitive advantage in the wearables category. As an early entrant in the category, Pebble was a trail blazer of the largest open, agnostic connected device operating system, which complements Fitbit’s broad cross-platform compatibility with more than 200 iOS, Android and Windows Phone devices.

The Pebble transaction was completed on December 6. (Original Source)

Shares of Fitbit are currently trading at $8.07, up $0.08 or 1.06%. FIT has a 1-year high of $33.35 and a 1-year low of $7.81. The stock’s 50-day moving average is $13.80 and its 200-day moving average is $14.23.

On the ratings front, Fitbit has been the subject of a number of recent research reports. In a report released yesterday, Oppenheimer analyst Andrew Uerkwitz reiterated a Buy rating on FIT, with a price target of $12, which represents a potential upside of 50% from where the stock is currently trading. Separately, on the same day, Dougherty’s Charlie Anderson reiterated a Hold rating on the stock .

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Andrew Uerkwitz and Charlie Anderson have a yearly average return of 5.5% and 3.2% respectively. Uerkwitz has a success rate of 50% and is ranked #616 out of 4262 analysts, while Anderson has a success rate of 48% and is ranked #1637.

Sentiment on the street is mostly neutral on FIT stock. Out of 19 analysts who cover the stock, 15 suggest a Hold rating , 2 suggest a Sell and 2 recommend to Buy the stock. The 12-month average price target assigned to the stock is $10.67, which implies an upside of 34% from current levels.

Fitbit, Inc. engages in the development of wearable device which tracks data of an individual’s health. It offers products which can track a person’s activities, such as calories burned, sleep quality, steps, and distance. The data collected allows an individual to monitor their progress towards their own personal goals.