US-based Fossil Group, which makes clothing and various accessories, including watches, has agreed to acquire Misfit, a maker of wearables.
Misfit is just a 4-year-old company that makes affordable trackers, such as the Shine 2, as well as some smarthome devices, including smart bulbs. Fossil Group has announced it will buy Misfit for $260 million and plans to incorporate its activity-tracker technology into "traditional timepieces and fashionable connected accessories", which we will begin seeing by next year.
Sonny Vu, the co-founder and CEO of Misfit, will become the new president and CTO of Fossil Group. He seems to believes that - by combining Fossil Group and Misfit together - both companies will not only have the technology but also the brand recognition to offer products to a much broader audience. He told The Wall Street Journal, for instance: "If you don't have a brand it is hard to be legit in this space."
"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," he also said, in a statement. "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."
Misfit said it will continue to develop activity trackers under the Misfit brand, as Fossil Group works Misfit's technology into Fossil and 16 other brands within the Fossil Group portfolio by 2016.
Fossil Group expects the acquisition to close before the end of fiscal 2015.