Fitbit, one of the biggest names in fitness trackers, paid $23 million to acquire the assets and intellectual property of Pebble, one of wearable's early stars.
The sales price was revealed Wednesday in a press release detailing the company's fourth quarter financial results. Terms of the deal were not disclosed when Fitbit announced the acquisition in December but people familiar with the deal said at the time the price was less than $40 million.
Fitbit's purchase comes as the market for wearables grew 3 percent in the third quarter of 2016, according to IDC, the most recent market data available. The market researcher was pessimistic in its outlook for the sector, saying that its smart wearables continue to struggle in the near term.
In February 2015, Pebble was a crowdfunding darling, raising more than $20 million for its Pebble Time smartwatch. The company reported hefty demand for its standard smartwatch and Pebble Steel watch.
But times have changed since it launched its first smartwatch in 2012. Pebble faces more competition from major players such as Apple, Samsung, LG, Motorola and Microsoft, among others. The climate apparently took its toll on Pebble, which in March announced it was laying off 25 percent of its workforce.