Fossil Group has acquired fitness wearables maker Misfit for $260M. The acquisition will enable Fossil Group to offer consumers both traditional timepieces and fashionable connected accessories.
Fossil Group expects the acquisition to close before the end of fiscal 2015. The purchase price of $260 million, including transaction costs, will be funded through a combination of cash on hand and bank debt. Sonny Vu will serve as president and chief technology officer of connected devices for Fossil Group, Inc., and will be a member of the company’s executive leadership team. Fossil plans to scale Misfit’s technology across Skagen and a targeted portion of its portfolio of 16 brands in 2016. The company said that the acquisition will help it expand and renew its product offerings.
“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.”
said Kosta Kartsotis, chief executive officer of Fossil Group.
Last month, Fossil launched a new range of connected fashionable accessories – the Q Grant, Q Dreamer, Q Reveler and Q Founder. Meanwhile, Misfit unveiled Shine 2 fitness tracker and sleep monitor. The wearable and fitness-tracking market is becoming increasingly crowded. Last week, Tag Heuer launched the $1500 luxury Android powered smartwatch.