The acquisition will fuel rapid growth in wearable technology, the company says
Fossil Group has announced its acquisition of Misfit, the wearables manufacturer, for $260 million.
Misfit was named in honor of Steve Jobs and Apple’s “Think Different” slogan: “Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in square holes.” It was founded in 2011 and raised funding for its first product through an Indiegogo campaign. A year later, it raised $7.6 million in Series A funding; in 2013, its Series B round raised $15.2 million. The company is best known for its simple, affordable activity trackers Misfit Flash and Misfit Shine.
Fossil announced that it expected to scale Misfit’s technology across Fossil, Skagen, and “a targeted portion of its portfolio of 16 brands” in 2016.
“We have a significant opportunity to add technology and connectivity across our platform of watches and accessories,” said Kosta Kartsotis, chief executive officer 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.”
Greg McKelvey, chief strategy and digital officer of Fossil Group, said: “Our world-class design and global distribution, combined with Misfit’s technology platform, creates a significantly advantaged, multi-brand, and global wearable technology business poised to drive the convergence of fashion and technology.”
Misfit founder and CEO Sonny Vu said: “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.”
Vu will join Fossil as president and chief technology officer of connected devices. He will also join the company’s executive leadership team.
The deal is expected to be finalized by the end of fiscal 2015.