Google is planning to pay $40 million to Fossil Group an amount of $40 million to acquire intellectual property-related to an upcoming technology. According to a new report, Fossil Group is currently developing the technology and it is meant to result in a notable innovation in the smartwatch industry. The information stated that this deal will result in new product launches in the near future. In this deal, some part of the Research and Development team from Fossil will join Google to bring the innovation to the market. Also Read - Android 12 leak hints at a major design revamp, better privacy features and moreAlso Read - Here's how US based Google Pay users can send money to India
According to an exclusive report by Wearable, EVP, Chief Strategy and Digital Officer at Fossil Group, Greg McKelvey noted that this deal is more like a transaction between the two companies instead of an acquisition. He went on to add that the upcoming lineup of products is based on the technology that the group built upon the technology it acquired from Misfit. As noted in the report, the company purchased the company back in 2015 for $260 million. Also Read - Google starts showing COVID-19 vaccine information in Search app
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McKelvey noted that the decision to launch this upcoming lineup of products is nothing new and was always on cards for the company. He did not dive further into details but added that the product will bring features and benefits that are not present in the Wearable industry. Google confirmed that the new lineup will be part of the Wear OS devices that exist in the market.
VP for Product Management for Wear OS at Google, Spacey Burr added that Google saw the technology and thought that it can be expanded in the entire wearable industry quickly if it had the technology. He noted that once the deal is done, the company will bring the same technology to other smartwatch makers and the smartwatch ecosystem as a whole.
The deal is expected to be finalized by the end of the month though we are not sure when the new product lineup will hit the market. Currently, The Fossil Group is focused on completing the development of the technology. Though this may not mean anything right now it does give us a concrete idea that Google is committed to improving the Wear OS ecosystem and has not given up on smartwatches and wearable devices.