Google and watch marker Fossil on Thursday announced that Google would acquire smartwatch-related intellectual property and staff from Fossil. The technology is under development and will only be used for future products. The acquisition means that Google now has IP and developers who will help the company more directly to turn to smartwatch and broader wearables industries.
Under the deal, Google will pay Fossil $ 40 million for IP, which is unusually yet to see the light of day. As part of the agreement, some of Fossil's engineers will also join Google to support the IP transfer, but the clock will hold more than 200 R&D staff to continue developing products and technologies.
"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 perpetual needs of the vitality-seeking, on-the-go consumer," Stacey Burr says. Product Manager Product Manager of Wear OS by Google.
The technology in question was developed in addition to technologies that Fossil received as a result of its $ 260 million Misfit acquired in 201
"We saw some technologies that they developed that we thought could be brought out in a more expansive way if Google had that technology and could not only continue to use it with Fossil, but bring it to other partners in ecosystem, "said Mrs Burr in an interview with Wareable.
Technical companies tend not to share exclusive technologies with each other unless they know they need industry-wide support to get these technologies out or just need someone to share it heavy lifting on their project. As Fossil uses Google's Wear OS for its existing smartwatches, it certainly needs to add support to its upcoming technology to the platform. According to the two companies they worked together, they concluded that they could both benefit if the IP was made available to other partners in the Wear OS ecosystem.
The Fossil's current plan is to incorporate the technology into its own smartwatches (yet enjoy some exclusive benefits) while Google expands it across the industry in the longer term. IP will enable Google to further improve its Wear OS platform and keep it competitive with Apple's WatchOS, Samsung's Tizen and other ecosystems. As an added bonus, Fossil will get $ 40 million, a substantial sum of money for a company that either lost money or earned minimal profits for some time now.
Sources: Fossil Group, Wareable