Google has acquired the smartwatch technology unit of Fossil Group for a sum worth $40 million. The company gets Fossil’s intellectual property related to a smartwatch technology that’s currently under development.
Along with that intellectual property, Fossil Group’s Research & Development (R&D) team which was working on the smartwatch technology, will now join Google to work on a ‘new product’ that will soon launch in the market.
This deal is a step forward for Google to create its own branded smartwatches to compete against the likes of Apple and Fitbit among others, which are currently leading the wearable technology space.
According to Greg McKelvey, EVP and chief strategy and digital officer of the Fossil Group, this deal is seen as a transaction, rather than an acquisition. In the statement, he said: “We’ve built an advanced 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.”
Commenting on this deal, Stacey Burr, a vice president at Google Wear OS division, said:
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.
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.
Fossil Group had entered the smartwatch market in 2015 with the acquisition of Misfit for $260 million. Misfit is a tech platform that makes smart watches and wearable fitness products and was founded by former Microsoft researcher Sonny Vu, Sridhar Iyengar, and former Apple chief executive officer John Sculley.
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According to the data from research firm IDC, the global shipments of wearable devices will hit 125.3 million units in 2018, up 8.5 percent from 2017, and that the market will grow 11 percent through 2022.
(Source)
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