What happened

Shares of Fitbit (NYSE:FIT) were up 15.7% as of 3:30 p.m. EDT Friday after Alphabet's (NASDAQ:GOOG)(NASDAQ:GOOGL) Google finally agreed to acquire the wearable fitness device specialist.

More specifically, Google will pay $7.35 per share in cash for Fitbit, marking a roughly 19% premium from yesterday's close and valuing the company at a whopping $2.1 billion.

A chess board with black pieces on the left, wood-colored pieces on the right, and a half-black, half-wood piece in the center.

IMAGE SOURCE: GETTY IMAGES.

So what

The news confirms more than a month of speculation; Reuters first broke the news of Big G's takeover interest in late September. Then the same outlet reported that Google had extended a formal offer to Fitbit on Monday. Shares of Fitbit also continued to rally later in the week, partly as investors weighed the potential for other prospective suitors to step in and drive any buyout premium even higher.

"Google is an ideal partner to advance our mission," said Fitbit co-founder and CEO James Park today. "With Google's resources and global platform, Fitbit will be able to accelerate innovation in the wearables category, scale faster, and make health even more accessible to everyone. I could not be more excited for what lies ahead." 

Now what

Investors should keep in mind this isn't a done deal. The transaction still requires approval of both regulators and Fitbit shareholders. But assuming all goes as planned, the acquisition should close sometime in 2020. So, with shares currently trading at only a modest discount to the agreed acquisition price -- and unless waiting longer to sell might result in more favorable long-term capital gains taxes on your profits -- I think most Fitbit investors would do well to put their money to work in another promising growth stock.