Fossil Group, the Texas-based company behind popular Fossil and Skagen watch brands and licenser of lifestyle fashion brands such as Michael Kors, Emporio Armani, and Diesel, has agreed to purchase wearables maker Misfit for $260 million USD.
According to its site, for Misfit this “marks a historic milestone” in its company. The reasons for Fossil to purchase Misfit was to make headway into the wearable market with a reputable brand, noting it will “own a technology platform that has already solved many of the hardest problems in wearables, including battery life.”
Misfit is commonly known for its fitness trackers, and Sonny Vu, Misfit’s founder and CEO, said it will continue to develop products under the Misfit brand. Part of the goal of the transaction is to embed its wearables and technology, such as the popular Shine line, into Fossil’s current fashion brands and accelerate the “connected accessory roadmap” in 2016. An interesting inclusion within the press release is the note that Misfit will use its new resources to enter into new markets, specifically music, fitness, healthcare and digital entities.
Vu, who will join Fossil as chief technology officer for the watch company’s connected devices group, said of the deal, “We are thrilled to join forces with Fossil Group to usher in the next era of wearables where elegance, beauty and long-lasting wearability are paramount. Together, we will introduce products that blend Misfit’s seamless, intuitive technology and user experience with the design, style and branding that is the hallmark of Fossil Group.”
Fossil Group expects the acquisition to close before the end of fiscal 2015. Fossil unveiled its first Android Wear-powered smartwatch and wearables last month.