Alphabet Inc. is in talks for a potential acquisition of smart watch maker Fitbit, a move that could bolster its hardware business while also increasing antitrust scrutiny, according to a person familiar with the deal.

Reuters reported the talks earlier on Monday, sending Fitbit’s stock up as much as 41%. Alphabet Chief Financial Officer Ruth Porat declined to comment on whether the two companies are in discussions.

Deliberations are ongoing and it may not result in a transaction, said the person, who asked not to be identified as the discussions are private.

Google is under investigation for anti-competitive behavior by both the U.S. federal government and a collection of state attorneys general because of its online advertising and data collection practices, making any acquisition the company does likely to come under strict scrutiny.

Sourced through Scoop.it from: www.bloomberg.com