Fossil Group has agreed to acquire smart wearables manufacturer-Misfit for $260 million. The deal marks the union of traditional watchmakers with Silicon Valley talent.
Misfit, which was founded in 2011, is known for crafting sleek, inexpensive activity monitors like Shine 2, which lasts up to six months on a coin battery. Fossil Group will start incorporating Misfit’s technology into its products resembling traditional watches as early as next year.
Misfit’s partnership with companies like Speedo and Swarovsky translated into a success but it couldn’t take over bigger players like Fitbit or Nike. Adding a comment on the company’s case, Co-founder and CEO of Misfit, Sonny Vu, said, “If you don’t have a brand it is hard to be legit in this space.”
As Kosta Kartsotis, CEO of Fossil Group maintained, with this acquisition, 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.
Apple has already delved deep into the smart-watch market. Similarly, a couple of days ago Tag Heuer in partnership with Google, unveiled its first ‘luxury’ Android Wear smartwatch in New York. And now with Fossil acquiring a wearable company, the watch industry seems to be getting more tech savvy than it ever has been.