Google Acquires Fossil's Smartwatch Technology for $40 Million to Bolster Wear OS Ecosystem

On January 17, 2019, VCBeat (WeChat Official Account: vcbeat) learned that Google would pay Fossil Group $40 million to acquire intellectual property rights related to smartwatch technology. Following this acquisition, members of Fossil’s R&D team will transfer to Google.

The acquisition is expected to be completed within this month. The products involved are currently under development and will not be disclosed publicly. Greg McKelvey, Executive Vice President and Chief Strategy and Digital Officer of Fossil Group, revealed that Fossil plans to launch a variety of devices.

Reportedly, the new product line was developed using technology acquired following Fossil Group’s acquisition of Misfit. In 2015, Fossil acquired Misfit Wearables for $260 million. Misfit was an early prominent player in the health wearable device sector, renowned for its minimalist and fashion-forward products, the Misfit Shine and Misfit Ray.

“We are now focused on completing product development,” explained Greg McKelvey. “Over time, the Fossil Group and Google will jointly bring the product to market. This technology will be adopted across the industry and continue to drive advancements in wearable device technology, benefiting everyone.”

Stacey Burr, Vice President of Product Management for Google Wear OS, revealed that the acquisition underscores Google’s commitment to the smartwatch sector, aiming to meet consumers’ evolving needs by offering a diverse portfolio of smartwatch products. She confirmed that the new products will be part of the Wear OS lineup, and that the new technology will enhance the capabilities of Wear OS, benefiting all of Google’s current and future partners.

“We have observed that they are developing new technologies. If Google were to own this technology, it would apply and promote it more broadly, extending it to other partners within the ecosystem,” said Burr. “We are very optimistic about the future of smartwatches, as well as the role that Google Wear OS and our partners play in this evolving landscape. This is a highly significant sector, and we will continue to invest in it and remain an integral part of this vibrant ecosystem.”

Apple recently announced that its electrocardiogram (ECG) sensor has received FDA approval, sparking speculation that Google is attempting to catch up with or even surpass Apple, which may explain Google’s acquisition of this new technology.

Fossil Group is a company focused on the design, marketing, distribution, and innovation of lifestyle accessories, leveraging design and new technologies to create distinctive watches, wearables, and accessories.

Google Wear OS, also known as Android Wear, is a version of the Android operating system developed by Google, designed for smartwatches and other wearable devices.