Google has decided to acquire some smartwatch technology from Fossil Group for $40 million. The technology is still under development and will also see a part of Fossil’s R&D team join Google.
As per Fossil’s EVP and chief strategy and digital officer Greg McKelvey, the deal will lead to a “new product innovation that’s not yet hit the market.” He also sees the deal as a transaction between the two companies instead of an acquisition by Google.
Fossil Group itself acquired this technology from its Misfit acquisition in 2015. The company has worked on this technology since then and further evolved it.
“It’s based on something out of our timeline, it’s new to the market technology and we think it’s a product that has features and benefits that aren’t in the category today,” he said.
Google’s Stacey Burr says that this move will show the company’s commitment to smartwatches and confirmed this new product line will be a part of Google’s Wear OS family.
“We saw some technology that they were developing that we thought could be brought out in a more expansive way if Google had that technology, and was not only able to continue to use it with Fossil but bring it to other partners in the ecosystem,” she said. “It’s about bringing great features to the widest numbers of on-the-go consumers.”
There’s no word as to when the technology from the said transaction will see the light of the day. Both companies are currently more focused on finishing the development of the product.
Fossil will be the first company to bring a series of products to the market with this technology. It will then expand the use of this technology across its different brands. And steadily, the technology will be used by other brands in the industry as well.
Google is being clear about making this technology available to all Wear OS partners and not just keeping it exclusively to itself. It wants to make Wear OS as a platform stronger instead of keeping the technology to itself.
The move does show that Google is still serious about Wear OS despite the platform and products not meeting with the level of success most companies hoped for. Here’s hoping that this technology from Fossil and Google helps Wear OS in catching up with the Apple Watch.