Fitbit Inc. is reportedly close to buying Pebble Technology Corporation’s software assets, including the Pebble OS. The deal is focused on the Kickstarter-based smartwatch company’s intellectual properties evident from the shutdown of Pebble, already in process with the cancellation of Pebble Time 2 and Pebble Core orders. The deal will also give Fitbit access to Pebble’s engineers and the company has already sent job offers to 40 percent of the Pebble staff, according to Bloomberg.  

The Bloomberg report adds that the purchase price for Pebble might be less than $40 million, which is less than its existing debt and market obligations. It said that Fitbit is not taking on the debt and the rest of Pebble’s assets, including product inventory and server equipment, will be sold off separately to service it. The hasty sale is being pushed through due to Pebble’s financial struggles — shipments for the company’s smartwatches fell down 52 percent in the third quarter of 2016.

Fitbit currently ranks the highest among smartwatch companies and has done better than the Apple Watch in the third quarter.

In terms of staff, Fitbit is expected to keep most of Pebble’s software engineers, few interface designers and offer severance packages to rest of the staff. Pebble CEO Eric Migicovsky is expected to join the startup Y Combinator as an advising partner to early-stage companies on hardware development.

Among Pebble’s recently launched products, only Pebble 2 will be continued since it has already started shipping to customers who ordered it through Kickstarter.