The tech giant will pay $40m for IP “related to a smartwatch technology currently under development” by Fossil and will also pick up “a portion” of the team researching and developing the tech in question, Fossil said in a statement.
Google, which has for some time been rumoured to be working on its own smartwatch that could compete with the likes of offerings from Apple and Samsung, said the deal demonstrated its “commitment to the wearables industry”.
Fossil shares were up 5.9 per cent in lunchtime trade in New York, but gained as much as 10.9 per cent following the announcement.
Greg McKelvey, an executive vice-president at Fossil, said: “We’ve built and advanced a technology that has the potential to improve upon our existing platform of smartwatches. Together with Google, our innovation partner, we’ll continue to unlock growth in wearables.”
Google has for some time been rumoured to be working on its own smartwatch, which is likely to borrow the Pixel moniker applied to its smartphones and utilise their Wear OS software.
Stacey Burr, vice-president of product management, Wear OS by Google, said the addition of Fossil’s technology and team “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.”
After, Google buy intellectual property of wearables technology from Fossil group to enter into the wearable segment can also been seen from the Apple Competition point of view. Google wants to make the impact in the segment and this deal seems to be the first step towards the goal.