Fossil will sell intellectual property (IP) related to smartwatch technology to Google for $40 million. Also included with this deal is some of Fossil's research and development team that's currently supporting the IP that Google is getting.
“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," said Stacey Burr, VP of product management for Wear OS at Google. "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."
The transaction is expected to close later this month.
Details on the smartwatch technology that Google is getting is still light, but this sounds like a big deal for Google. As I said before, Fossil has been prevalent in the smartwatch market, rolling out a variety of Wear OS watches over the past few years. Now Google is getting some of Fossil's tech and employees, and it'll be interesting to see what comes of the deal. Stay tuned.