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Report: Fitbit in talks with bank for potential sale

Wearable device maker Fitbit Inc. is in discussions with investment bank Qatalyst Partners LP for a potential sale of the company, Reuters reported Sept. 20, citing people familiar with the matter.

Fitbit's shares rose as much as 23.16% to $4.52 following the news.

Fitbit is reportedly seeking Qatalyst's advice on whether it should engage with potential acquirers. One of the sources told the news outlet that the bank has been pushing for Fitbit to explore its options for several weeks, suggesting that the company could attract interest from Google LLC owner Alphabet Inc.

The news wire said Fitbit has not yet reached a decision regarding the matter and there is no certainty that a sale will push through.

The potential move comes as Fitbit struggles to shift toward smartwatches from fitness trackers as Apple Inc. and Samsung Electronics Co. Ltd. hold a big share of the market, the report said.

Fitbit's offerings are also facing pressure from cheaper smartwatch alternatives from China's Huawei Technologies Co. Ltd. and Xiaomi Corp., Reuters added.

Fitbit and Alphabet told Reuters that it is their policy not to comment on rumors and speculation, while Qatalyst did not respond to a request for comment.