The tech reportedly combines digital and analog features for smartwatches.
Google's $40 million acquisition of Fossil's tech earlier this yearwas reportedly for hybrid smartwatches. Fossil's technology is internally called Project Diana, stemming from the combination of the words "digital" and "analog," Wareable reported Monday citing anonymous sources.
Diana combines "physical watch features with digital elements," according to the report, including some watches without screens.
That $40 million reportedly covers a license to use Diana tech, along with around 20 engineers who were acquired by Fossil in its own $260 million acquisition of Misfit in 2015.
Google in January announced its purchase of secret smartwatch tech from Fossil. Google and Fossil had combined forces on smartwatch development before this.
"We've built and advanced a technology that has the potential to improve upon our existing platform of smartwatches," said Greg McKelvey, executive vice president and chief strategy and digital officer at Fossil, at the start of the year.
Google declined to comment on the Wareable report.