Fitbug rallies after link up with Jawbone

Reeling from the loss of a hugely significant court case in the US and subsequent plunge in the share price, wearable fitness devices firm Fitbug has bounced back by sealing a deal with a major rival, SanFranciso-based Jawbone. As well as fitting Fitbug's strategy of beefing up its profile and scaling up the business, the move is also bound to reignite takeover talk.

Jawbone, a wearable devices business and direct competitor with Fitbug, will feature the UK firm's Slim + Trim Kiqplan digital health coaching platform on its newly launched Jawbone Marketplace. The weight-loss programme will sit alongside other devices and apps covering fitness, sleep, food, lifestyle and smart home products, and sell for $19.99.

The Kiqplan system will work seamlessly with Jawbone's UP App to integrate data across the two platforms. Food, steps, and workouts logged in Kiqplan will automatically be visible in the UP App and vice versa.

"We are delighted to now be working with Jawbone, a large and respected leader in the sector that shares our vision of bringing the digital health revolution to as many people as possible," says Fitbug boss Paul Landau.

Interestingly, Jawbone has been active in an industry which has been the subject of M&A in recent years. In April 2013, the firm is reported to have paid $100 million for BodyMedia, a US based company that makes health-monitoring armbands.

Fitbug shares, which had traded as low as 3.75p on Tuesday, a three-month low, rose as much as 72% on Thursday to 9.25p. They had traded as high as 26.5p in November.

The bounce comes soon after Fitbug said a US court had found against it in a hugely expensive trademark dispute with US rival Fitbit. While the company's ultimate success did not hinge on the outcome, it was potentially the source of a huge windfall and would have been a big blow to one of its major competitors.

"Fitbug Holdings…has today learnt that in its trademark dispute against Fitbit Inc, the District Court for the Northern District of California, San Francisco Division has granted summary judgment in Fitbit's favour on the defence of laches (an unreasonable delay by the plaintiff in bringing the claim)," the firm said.

"Fitbug is currently in discussions with its legal advisors and is considering its options."

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