Google is all set to acquire Fossil Group’s intellectual property (IP) related to smartwatch technology. Fossil Group has revealed that the acquisition is currently 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.
Google will buy the smartwatch technology from Fossil Group for $40 million. As a part of the transaction, a portion of Fossil Group’s research and development team will join Google. The company has also revealed that it will retain more than 200 R&D team members to focus on “innovation and product development”.
The transaction is expected to close this month. Fossil Group has various sub-brands including Fossil, Michele, Misfit, Relic, Skagen and Zodiac, and licensed brands, Armani Exchange, BMW, Chaps, Diesel, DKNY, Emporio Armani, kate spade new york, Marc Jacobs, Michael Kors, PUMA and Tory Burch.
“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.