Paul Lamkin wrote for Wareable that Google agreed to pay $40 million for Fossil’s secret smartwatch tech.

The Fossil Group and Google have exclusively revealed to Wareable that Google will pay Fossil $40 million to buy intellectual property related to a smartwatch technology currently under development.

The deal, which will see some of Fossil’s R&D team joining Google, will result in the launch of a “new product innovation that’s not yet hit the market”. That’s according to Greg McKelvey, EVP and chief strategy and digital officer of the Fossil Group, who also stated to us that he sees the deal as transaction, rather than an acquisition.

This points to the success of the Apple Watch and Google is scrambling to play catch up.