Fossil Group has entered into a definitive agreement to acquire Misfit in a move that would allow the company to offer consumers “both traditional timepieces and fashionable connected accessories.” Misfit is also bringing its cloud and app platform to the deal, along with all the talent and technology it has developed throughout these (few) years.
“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’s plan is to bundle Misfit’s technology in Fossil, Skagen and a “targeted portion of its portfolio of 16 brands in 2016.” In other words, we expect to see a lot of Withings Activité-like devices that connect to the well-polished mobile app Misfit has developed. Hopefully, a heart rate sensor is also included in Fossil’s plans, since that part was missing from Misfit’s current products.
Also, Fossil is also looking to work on new distribution channels, new products, new brands and new enterprise partnerships, including music, fitness, healthcare and digital entities.
Misfit is also bringing its cloud and app platform to the deal, along with all the talent and technology.Fossil Group expects the acquisition to close before the end of fiscal 2015, subject to customary closing conditions and regulatory approval. The purchase price of $260 million, including transaction costs, will be funded through a combination of cash on hand and bank debt.
Under the deal, Misfit’s Sonny Vu will serve as president and CTO of connected devices for Fossil Group, and will be a member of the company’s executive leadership team.
Misfit has raised its last round in December of last year, when it got money from Chinese tech giant Xiaomi and other local investors. More recently, the company has been expanding to Asia and its latest product, Shine 2, was unveiled at an event in Beijing, China.