Fossil Group, a well-known wristwatch maker is all set to acquire Misfit, the fitness wearables company for $260 million.
Founded in 2011, the startup Misfit has been making minimalistic, low-cost, aluminum and plastic fitness trackers for the fitness fanatics. Its flagship product is the Shine 2 that sleek, inexpensive activity monitors and functions up to 6 months on a coin battery. Apart from the fitness bands, it also makes smarthome products like sleep monitors and smart bulbs. The startup proved successful after teaming up with Speedo and Swarovski, however it lacks behind when compared to its competitors Fitbit or Nike. Sonny Vu, the co-founder and CEO of Misfit said, “If you do not have a brand it is hard to be legit in this space.”
Further to the acquisition, Vu who works on the strong principle that wearables should be attractive and functional, would be joining the Fossil Group as CTO. Fossil Group owns Fossil, Skagen, Michele and Zodiac and also makes watches for brands like Adidas, Emporio Armani, Michael Kors, Burberry and DKNY. According to the statement released, the Fossil Group plans to use Misfit’s technology in Fossil and Skagen products to create more connected devices. Details of the connected devices it plans to make has not been disclosed.
“We have a significant opportunity to add technology and connectivity across our platform of watches and accessories. With the acquisition of Misfit, Fossil Group will be uniquely positioned to lead the convergence of style and technology and to become the fashion gateway to the high-growth wearable technology and connected device markets.” Kosta Kartsotis, CEO of Fossil Group said in the statement.
The acquisition seems to be at the advantage for both the companies. Fossil has worked with connected devices in the past, much prior the release of the Q collection and Misfit is a well-known lifestyle-focused wearable device companies in the market. Now with the merging, Misfit will gain a better brand name and Fossil Group can make use of Misfit’s technology to find a broader scope than it had till now.
The acquisition deal is expected to close before end of this year.