Google has entered an agreement with Fossil Group to acquire $40 million USD worth of IP related smartwatch technology under development.
“Fossil Group has experienced significant success in its wearables business by focusing on product design and development informed by our strong understanding of consumers’ needs and style preferences,” said Greg McKelvey, Executive Vice President and Chief Strategy and Digital Officer, Fossil Group.
Also, part of the deal, part of Fossil’s research & developer (R&D) team will help with the transition of IP to Google. Fossil will still retain more than 200 R&D team members.
“Wearables, built for wellness, simplicity, personalization and helpfulness, have the opportunity to improve lives by bringing users the information and insights they need quickly, at a glance. The addition of Fossil Group’s technology and team to Google demonstrates our commitment to the wearables industry by enabling a diverse portfolio of smartwatches and supporting the ever-evolving needs of the vitality-seeking, on-the-go consumer,” said Stacey Burr, Vice President of Product Management, Wear OS by Google.
Fossil Group has successfully developed and launched smartwatches across 14 of the company’s owned and licensed brands (such as Skagen, Misfit, Diesel, Kate Spade and more).
This isn’t the first time Google has done something like this. Back in 2017, Google signed an agreement with HTC to acquire their Pixel phone team for $1.1 billion USD.
Google and Fossil’s deal is expected to close by the end of January.
Source: Fossil Group