Last week it was revealed that Fitbit was in talks to acquire and subsequently kill off smartwatch maker Pebble, much to the dismay of many Pebble fans. Now, a report from Bloomberg explains that Fitbit’s acquisition will spell the end of the company’s yet-to-be-released new smartwatch, the Pebble Time 2 as well.

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Bloomberg’s report describes this acquisition as “imminent,” with the deal offering jobs to approximately 40% of Pebble’s current staff, mainly software engineers. This confirms previous rumors that Fitbit’s goal in buying Pebble is for the company’s software assets.

However, the deal doesn’t cover any hardware at all – that includes current Pebble wearables and future options as well, such as the Pebble Time 2 which was supposed to debut this month. The report states that “the rest of Pebble’s assets, including product inventory and server equipment, will be sold off separately.”

The report further confirms previous rumors, stating that Fitbit will acquire Pebble for under $40 million, mainly due to Pebble’s debts and other obligations which exceed the purchase price. Following the deal, Pebble’s offices will be closed and it will be up to Fitbit’s discretion as to what will lie in the future for the Pebble brand.

As for to-be-released hardware – the Pebble Time 2 and Pebble Core will both be canceled with Kickstarter backers receiving full refunds. The Pebble Time 2, the company’s new “flagship” wearable, garnered attention from many fans early this year when it was announced as, alongside the Pebble Core and Pebble 2, it raised nearly $13 million on Kickstarter.

The Pebble 2, which is currently on sale, will remain on shelves, but it’s unclear how long that will last or how Fitbit plans to support the $99 wearable in the future.

Of course, Pebble and Fitbit have yet to officially comment on these reports, but an announcement is expected in the coming days.

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