In the latest Fossil Group news (NASDAQ:FOSL), the watch maker announced that it has reached a deal with Google — owned by Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) — in which Fossil will offer the tech giant some of its technology.
The deal will see the watch manufacturer provide Google with some of its smartwatch technology, as well as some members of its research and development division that is responsible for creating the division. The deal is worth an approximate $40 million, with the deal’s terms determining that Fossil will transfer a “portion” of its R&D workers.
This portion of Fossil’s R&D team is directly responsible for the intellectual property that is being sold to the tech giant. This means that Google will now have, under its employment, a team of workers who have hardware experience, helping the company with its WearOS software platform, as well as possibly new smartwatch designs moving forward.
“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,” Stacey Burr, president of product management for Google’s WearOS platform, 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.”
FOSL stock is up 4.5% Thursday, while GOOG stock is up 0.3% and GOOGL shares are up 0.3%.