Fossil Group agrees to sell select smartwatch technology to Google for $40 million

With this announcement, the watchmaker’s shares went up as much as 11 percent

Fossil Group, an American fashion designer and manufacturer recently announced its plan to sell a $40 million intellectual property (IP) related to a smartwatch technology to Google. Reportedly, the technology is currently under development by Fossil Group. As part of the transaction, a portion of Fossil Group’s research and development (R&D) team currently supporting the transferring IP will join Google. Moreover, Fossil Group retains more than 200 R&D team members to focus on innovation and product development.

As per the reports, the transaction is expected to close by January 2019. The deal highlights Fossil Group and Google’s shared investment in the wearables industry.

Together the companies seek growth in wearables sector

Greg McKelvey, Executive Vice President and Chief Strategy and Digital Officer, Fossil Group, stated, “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.” Further, he said, “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.”

Stacey Burr, Vice President, Product Management, Wear OS by Google, quoted, “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. 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.”

According to Wearable’s quote of Greg McKelvey, EVP and chief strategy and digital officer, Fossil Group, the new Wear OS device(s) will feature technology developed on top of Fossil’s $260 million acquisition of Misfit.

About Fossil Group

Under a diverse portfolio of owned and licensed brands, Fossil Group’s offerings include fashion watches, jewelry, handbags, small leather goods, and wearables. The giant strives to deliver the innovation across its owned brands, Fossil, Michele, Misfit, Relic, Skagen and Zodiac, and licensed brands, Armani Exchange, BMW, Chaps, Diesel, DKNY, Emporio Armani, kate spade new york, Marc Jacobs, Michael Kors, PUMA, and Tory Burch.