The Fossil Group and Google have only revealed Wareable that Google will pay fossil $ 40 million to purchase intellectual property rights for a smartwatch technology under development.
The agreement, which will see some of Fossil's R&D team joining Google, will result in the launch of a "new product innovation not yet hit by the market". According to Greg McKelvey, EVP and the Fossil Group Chief Strategy and Digital Officer, he also told us he sees the deal as a transaction rather than an acquisition.
He explained that this new product line is based on technology that the Fossil Group has developed beyond the Misfit industry. Fossil bought Misfit for a reported $ 260 million back in 201
"It's based on something outside our timeline, it's new to market technology, and we think it's a product that has features and benefits not in the category today," he said.
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Stacey Burr, VP of Product Management of Wear OS at Google, explained that the dealer highlights the company's engagement in the smartwatch genre and confirmed that the new product line will be within 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 and could not only use it with fossils but bring it to other partners in the ecosystem , "she said. "It's about bringing good features to the widest number of consumers."
The transaction is expected to be completed this month, although no company will reveal how accurately we are likely to see the products from the deal come forth. McKelvey revealed that Fossil plans to launch more devices across its brands based on the new technology.
"We are now focused on completing the development of the product," he explained. "The Fossil Group will bring the product to market across our full range of brands over time, and so in true Google fashion, technology will be expanded across the industry over time to the benefit of all."
We pushed Burr on whether it meant that the much anticipated "Smartwatch" made by Google was now more likely, but as she confirmed having the technology internally makes Wear OS stronger, she was keen to emphasize that the new technology would be available to all Google's existing and future partners.
"We are very optimistic about the smartwatch's future and the role of Google, Wear OS and our evolving space partners. This is a very important category and we will continue to invest and be part of this dynamic ecosystem."
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