Google buys fossil smartwatch tech for 40 million dollar
Google agreed to pay $40 million (roughly Rs. 280 crores) for the smartwatch technology of the fashion and accessory group Fossil, the companies said Thursday, enabling the California tech giant to expand in the growing wearable tech market.
Wearables have brought Google and the fashion-focused Fossil Group closer together. Today, Fossil announced it will sell intellectual property related to smartwatch technology to Google in a deal worth $40 million. Upon news of the deal, Fossil Group shares jumped about 8 percent today.
“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,” Wear OS VP Stacey Burr said in a statement. “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.”
Greg McKelvey, Executive Vice President, and Chief Strategy and Digital Officer at Fossil Group, said the following in a statement:
Fossil Group has experienced significant success in its wearables business by focusing on product design and development informed by our strong understanding of consumers’ needs and style preferences. 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.
As part of the deal, Texas-based company’s Group research and development team working on the smartwatch will join Google, which will acquire the intellectual property for company smartwatches, the firms said.
The move would give Google the potential to create its own branded smartwatches to compete against Apple, Fitbit, and others in the wearable tech space.
“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, a vice president at Google Wear OS division.