A $260 million deal: Fossil Group purchases Misfit
Fossil Group, a worldwide-recognized marketing and distribution company for lifestyle and fashion accessories, recently confirmed that it will be acquiring Misfit, a manufacturer of connected wearable products, for $260 million.
According to a company press release, this deal will allow Fossil Group to broaden its market through Misfit's scalable app platform, highly recognizable brand and innovative product & hardware engineering team. This acquisition will also help Fossil Group solve its current problem with the battery longevity of its wearable, and allow it to market to new brands and gain new partnerships in the fitness, healthcare, digital and music industries.
As part of the deal, the founder of Misfit, Sonny Vu, is named as the CTO of Fossil and set to spearhead the company's new initiative for innovative wearable solutions. The deal is significant, according to ZD Net, due to it being the project beginning for the consolidation of the fitness wearable industry.
"We fundamentally believe consumers care about both technical functionality and fashionable design. 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," said Greg McKelvey, chief strategy and digital officer of Fossil Group said in a prepared statement. "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."
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