Consumer wearables manufacturer Fitbit announced on February 13 that it is acquiring Twine Health, a "health activation platform" used by employers to manage their workforces' health at the population level. Fitbit has been seeking to diversify its business as sales and consumer usage of its wristband activity trackers have stagnated and then declined since 2015.
Twine Health's founder and CEO, Dr. John Moore, will become Fitbit's medical director. The acquisition should help Fitbit be viewed as a more "serious" healthcare company with more potential revenue sources, including health insurers and self-insured employers. In the consumer market, however, Fitbit's devices will continue to compete with wearables from Apple, Garmin, Samsung and other companies.
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