Fossil Group has agreed to sell intellectual property (IP) related to its smartwatch technology to Google for $40 million.

The American fashion brand said that under the terms of the deal, its research and development team would be joining Google to support the ongoing development of the technology.

Fossil said that in recent years smartwatches have become its fastest growing category, with 14 smartwatches launched so far, including integrations with Google Pay and health apps suitable for iPhone and Android smartphones.

Stacey Burr, vice president of product management at Wear OS by Google, 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.”

The transaction is expected to close this month. Google’s purchase of hardware-driven technology is the latest move in the race among tech giants to tap into the growing market in wearable technology, which industry experts expect to reach $57 billion by 2022.

Greg McKelvey, chief strategy and digital officer at Fossil Group, said: “Together with Google, our innovation partner, we’ll continue to unlock growth in wearables.”

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