Fossil Group, Inc. has announced it has agreed to acquire the start-up wearable technology company, Misfit, Inc.
The move represents a further invasion into fashionable connected accessories and smart watches by Fossil Group, on the back of the imminent launch of the Fossil Q connected range.
Chief executive officer of Fossil Group, Kosta Kartsotis, says: “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.”
The acquisition will allow Fossil Group to use Misfit’s technology across Fossil, Skagen and a targeted portion of the rest of its brands. This will allow the company to reach new distribution channels with a new product offering, which will open the door to new commercial partnerships.
Chief strategy and digital officer of Fossil Group, Greg McKelvey, adds: “We fundamentally believe consumers care about both technical functionality and fashionable design,” said Greg McKelvey, chief strategy and digital officer of Fossil Group.
“In fact, one without the other is simply not enough. With the acquisition of Misfit, Fossil Group will be positioned to win with the connected consumer,”
Misfit’s founder, Sonny Vu, was equally effusive in his approval of the impending purchase.
“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,” said Vu.
“Together, we will introduce products that blend Misfit’s seamless, intuitive technology and user experience with the design, style and branding that are the hallmarks of Fossil Group.”
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.