Google is going to pay 40 million US dollars to purchase Fossil’s intellectual property. Fossil Group will sell to Google the property of a technology for smartwatches which is currently under development. The company dedicated to fashion have announced this during the annualGoogle I/O developers conference in Mountain View on Thursday.
As a result of the contract expected to conclude this January, some members of Fossil’s research and development team will join Google for the launch of a new product line based on that technology. There will be 200 people in their R&D department said Greg McKelvey, executive vice president and head of strategy and digital from the Fossil Group.
Fossil Group currently has 14 series of smartwatches, and according to the company this is its business branch with the highest growth in recent years. This new product line is based on technology that has evolved Fossil Group, acquired the US Company of consumer electronics Misfit 260 million in 2015; McKelvey explained to Wareables.
”It is based on something outside our timeline, it is a novelty in the technology of the market and we believe that it is a product that has characteristics and benefits that are not in the current category.”
As explained by the website, Fossil is one of the leading brands that develop smart watches with the Google OS Wear OS. Although it competes openly with the Apple Watch, it has cost a lot of work to achieve a mass adoption among consumers. However, smart watches have been the fastest growing category of Fossil.
On Google’s side, Vice President of Product Management Wear OS of Google Stacey Burr said in a statement:
“We saw a technology that they were developing that we thought could be made in a wider way if Google had this technology and not only could continue to use it with Fossil, but we could also take it to other partners in the ecosystem.”
However, both of the companies did not unveil the accurate date of launch of this new line of products. As for the moment they are focused on finishing the product development and only revealed that Fossil plans to launch multiple devices based on this new technology through several of its brands.