Google agreed to acquire smartwatch technology and staff from Fossil Group Inc. in an attempt to boost the search giant's incipient efforts in the category.
The Alphabet Inc unit will pay $ 40 million for Fossil's intellectual property, according to a company statement. In addition, an unspecified number of Fossil R & D staff will join Google. Fossil said 200 people will remain with this division.
Fossil shares rose 11 percent to $ 19.32 on Thursday. The stock of the alphabet was little changed at $ 1,089.58.
For several years, Google has provided free software, called Wear OS, that other companies can use to make their own clocks connected to the Internet. But sales of these handsets were well behind Apple Inc.'s Watch. Google does not sell its own smartwatch, but has a growing hardware division manufacturing Pixel smartphones and other devices.
A Fossil spokeswoman said that intellectual property is related to technology that is not currently on the market. A Google spokeswoman declined to provide further information.
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