This Thursday, an American group of companies engaged in the production and sale of watches and accessories, Fossil Inc. has announced the sale of its technology for the production of smart watches to Google Corporation. The transaction includes the transfer of intellectual property rights owned by Fossil, as well as the transfer of part of the team of researchers and developers. The transaction amount was about 35 million euros, the transaction will be completed within the next few weeks.

It should be noted that, according to the data of the Fossil group itself, the business division "Smart watches" has seen the greatest development in recent years. Fossil Group has achieved success in its business focused on the design and development of Smart Watch.

In 2015, Fossil Inc. acquired the American consumer electronics company Misfit for $260 million. As explained by Greg McKelvey, Executive Vice President and Head of Strategy and Digital Technology at Fossil Group, the technology they just sold to Google, is a continuation of the ideas and technologies they acquired from Misfit. The technology developed as a result of the Fossil Group is capable of leading to the grandiose development of the smartwatch platform itself in the future. And Google plans to build on this success.

In Google explained that the agreement will allow the corporation to get a wide range of different smartwatches. Stacy Burr, vice president of Google Wear OS, noted that "products created for wellness, simplicity, personalization and benefit can improve our lives by providing users with the information and ideas they need, literally instantly, one by one the view».

Investors, having received information about the new agreement, immediately took action: shares of Fossil (FOSL) soared by 8% by the close of the market on Thursday. And this is despite the fact that the company's shares have fallen by 16.97% in the last quarter, and by 33.04% in the whole six months. The results of the current deal have caused many in the industry to wonder how deals with Google will affect the value of their shares.

At the moment, investors have invested about $905 million in Fossil shares. The main shareholders are Fmr Llc (130.58 million, or 15.38% of the capital), Blackrock Inc. (116.32 million, or 13.68% of the capital) and Vanguard Group Inc (98.15 million, or 11.55% of the capital).

Photo: official website of Fossil