Fossil Group, a designer and distributor of consumer fashion accessories, watches and jewelry, has acquired wearable technology manufacturer Misfit for $260 million. Sonny Vu, CEO of Misfit, will now serve as President and Chief Technology Officer of Connected Devices for Fossil.
Fossil Group is home to the Fossil and Skagen watch brands and licenses a host of other brands such as Burberry, DKNY, Marc Jacobs and Tory Burch. The distributor sells 50 million watches and accessories annually in 150 countries. With the acquisition, Fossil can scale the Misfit technology across this brand portfolio to offer both traditional timepieces and connected watches. Misfit products include the Shine, a wearable fitness and sleep tracker that costs $99, and the Flash, a lower-priced wearable selling for $29.
The watchmaker will leverage the technology to expand its market with new distribution channels, products, brands and enterprise partnerships, including music, fitness, health care and digital entities.
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“We have a significant opportunity to add technology and connectivity across our platform of watches and accessories,” said Kosta Kartsotis, CEO of Fossil Group. “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.”
Fossil will give employment offers to all Misfit personnel, according to Greg McKelvey, Chief Strategy and Digital Officer of Fossil Group. Fossil Group expects the acquisition to close before the end of 2015, subject to regulatory approval.
