Fossil Group announced a rather large transaction today – the sale of apparently secret smartwatch tech that the leading Wear OS device manufacturer is still developing.
Google is the buyer and also pays $ 40 million for certain intellectual property rights as for the acquisition of part of Fossil's R&D team as part of the agreement expected to close this month. The Fossil Group – which today announced the announcement and has developed smartwatches across 14 owned and licensed brands – said the deal shows both corporate "joint investment in the wearables industry."
In a statement included in deal news, a fossil exec dreamed what the company has been working on to now sell it to the sea giant. "The Fossil Group has experienced great success in its portable business by focusing on product design and development, informed by our strong understanding of consumer needs and style preferences," said Fossil Group Executive Vice President and Chief Strategy and Digital Officer Greg McKelvey. [1
In an interview with The news business Wareable acknowledged McKelvey that all this came from Fossil's $ 260 million acquisition of Misfit back in 2015. Fossil appears to be working on a new technology line based on technology developed thanks to Misfit purchases. "It's based on something out of our timeline, it's new to market technology, and we think it's a product that has features and benefits not in the category," McKelvey says.
Google Vice President of Wear OS Product Management Stacey Burr added another key detail. That regardless of this new product line, it is part of the Wear OS family. "We saw some technologies that they developed that we thought could be brought out in a more expansive way if Google had that technology," says Burr Wareable .
Besides having no sense of what this new product line will consist of, it is also not clear when this technology will be commercially available. But McKelvey told Wareable that "Fossil plans to launch more devices across its brands based on the new technology."