Fossil Group has revealed that it is selling $40 Million of the intellectual property to the Smart Technology to Google. According to the report, Fossil shares also jumped to about 8% yesterday.
In the recent year, the smartwatches have now become the Fossil fastest growing category, as it launched around 14 of its licensed and owned brands.
“Fossil Group has also nowadays experienced significant success in its wearables business by focusing on the design and development of the product informed by some of our latest strong understanding of consumers’ style and needs preferences,” Greg McKelvey, executive vice president and chief strategy and digital officer of Fossil Group, said in an interview. “We’ve built an advanced a technology that even has the potential to improve upon some of the more existing platforms of smartwatches. With the help of Google, our innovation partner, we’ll continue to unlock growth in wearables.”
As a part of the deal, which is expected to close by the end of this month, Fossil Research and Development team will be going to join the Google, while the Fossil will also be going to keep more than 200 R&D members to focus on the product development and innovation.
“Wearables, built for wellness, personalization, simplicity, and high range of helpfulness, have the opportunity to improve lives by bringing back with the users the information and insights they need quickly, at a glance. The addition of Fossil Group’s technology and the entire team to Google demonstrates our high level of commitment to the wearables industry by simply make them enabling a diverse portfolio of the large set of smartwatches and supporting the ever-evolving needs of the vitality-seeking, on-the-go consumer,” said, Wear OS executive by Google.
New data has also been revealed that the global shipments of the wearables devices are also expected to reach 189.9 million units by the end of 2022.
“The transition from some of the basic wearables to smart wearables will soon also going to continue over a couple of next five years as the two approach parity in terms of market share by the end of 2022,” Jitesh Ubrani, a senior research analyst for International Data Corporation (IDC)’s Mobile Device Trackers, said in an interview. “The rise of smart wearables will not just be in mature markets, but also from emerging markets in Asia/Pacific and elsewhere.”