fitbit should buy smart mat

Download Fitbit should buy smart mat

Post on 15-Apr-2017




0 download

Embed Size (px)


PowerPoint Presentation

Fitbit is losing market share in growing marketSource: IDC.com3x Market Growth2014 Market Share2015 Market Share

Profits suffer from increased competition and limited products

Source: Fitbit Annual Report,

Fitbit can leverage its brand strength to enter large and growing yoga market Yoga market presents natural product line extension within Fitbits healthy living mission statement

yoga...80% more Yoga Practitioners now than 2012 21.6M practice weeklyGroup & individual activity75% crossover into other athletic activities

Launch interactive Smart Mat followed by Fitbit-branded apparel line


Smart Mat Yoga Mats have pressure sensors to provide instant feedback and lessons through mobile devicesCompany about to launch productAffordable Acquisition (~$20M)Anticipated synergies from improved manufacturing and distribution yield $300M+ opportunityFitbit should acquire Smart Mat

Fitbit should then launch Yoga Apparel LineSmart Mat establishes Fitbit in Yoga marketFast growing, high margin, brand name, good entry point for apparelCross-selling opportunities: 75% of Yogis active athletes in other sports

Profit ForecastTotal 10 yr Profits (NPV) $ 749M

Shirt = $30 Good MarginsPants = $60 Growing Market TR = $90 Brand NameSource:

Estimated Profits from Fitbit Yoga products are StrongSources: See Fitbit Yoga DCF model in AppendixProfit Forecast ($M)

Fitbit ApparelFitbit Smart MatSmart Mat provides bold entry point and strong profits through 2019 until product life cycle declineApparel Line follows, driving sustained profits through end of 10-yr plan

Fitbit should purchase Smart Mat, and enter the Yoga and Apparel MarketsFitbit has over $500 million in cashInvestment wouldnt require added debt or equityYoga is a natural additionHelps diversify Fitbit and provide strong profits


Appendix featuring DCFs