Fossil is making a bigger play in the connected wearable space. The watchmaker, which recently announced its Android Wear-based smartwatch, the Founder, will acquire the fitness wearable tracker company Misfit for $260 million, with the deal expected to close by the end of Fossil's 2015 fiscal year.
Misfit has released a number of devices, including most recently the Shine 2. Fossil outlined its plans for integrating Misfit in its technology product plans:
- Own a technology platform that has already solved many of the hardest problems in wearables, including battery life.
- Scale Misfit's technology across Fossil, Skagen and a targeted portion of its portfolio of 16 brands in 2016, ultimately accelerating the company's connected accessory roadmap.
- Expand its addressable market with new distribution channels, new products, new brands and new enterprise partnerships, including music, fitness, healthcare and digital entities.
- Lead in the connected devices space by harnessing the power of a world-class software and hardware engineering team spearheaded by Misfit Founder, Sonny Vu.
Vu will become the president and chief technology officer of connected devices for Fossil Group once the acquisition is completed.
Fossil Group, Inc. to Acquire Wearable Technology Innovator Misfit
Acquisition of Leading Technology Platform and World-Class Engineering Team Will Fuel Rapid Growth in Wearable Technology
RICHARDSON, Texas, Nov. 12, 2015 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ:FOSL) today announced that it has entered into a definitive agreement to acquire Misfit, Inc., an innovator in wearable technology and stylish connected devices. The acquisition will enable Fossil Group to expand its addressable market, offering consumers both traditional timepieces and fashionable connected accessories. Misfit brings to Fossil Group a scalable cloud and app platform, a world-class software and hardware engineering team, a native wearable technology brand and a pipeline of innovative products.
"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."
The acquisition will enable Fossil Group to:
Own a technology platform that has already solved many of the hardest problems in wearables, including battery life. Scale Misfit's technology across Fossil, Skagen and a targeted portion of its portfolio of 16 brands in 2016, ultimately accelerating the company's connected accessory roadmap. Expand its addressable market with new distribution channels, new products, new brands and new enterprise partnerships, including music, fitness, healthcare and digital entities.
Lead in the connected devices space by harnessing the power of a world-class software and hardware engineering team spearheaded by Misfit Founder, Sonny Vu. "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. "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."
"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 Sonny Vu, founder and chief executive officer of Misfit. "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."
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.
Sonny Vu will serve as president and chief technology officer of connected devices for Fossil Group, Inc., and will be a member of the company's executive leadership team.
I never heard of misfit, but it sounds awful. like it doesn't fit or something
Best Windows article ever!
Misfit supports Windows Phone with apps
Have you guys at WC used the Misfit apps? They are pretty awful in my experience and reading the comments on the store and Misfit's Twitter feed, it seems like many people support this view. I still wear my Flash for a couple of reasons: first I got it on sale after Christmas for $25 CDN, and second because it actually is a decent piece of hardware. In the eight months I've used it (since BT 4.0 came to my phone) it has not synced a single full week of data to the app, though the tracker has recorded them. While they do make an app, I would hardly say they support Windows Phone.
Yeah, the Misfit app is utter trash. I bought a Fitbit because Misfit's support is such a joke.
Tag heuer gets connected now fossil. Maybe Rolex and swatch next?? Interesting times!
Rolex won't jump in the game for a long ass time. No where near enough battery life for them
I have a misfit. I wonder what will happen to it... W10 support? Or just Android/iOS?
Kind a shocked it's worth $260 MILLION? Starting to think we techno-nerds way under estimate how many devices are gobbled up by 7 BILLION people. Around here you sometimes get the feeling that the opinion of a few thousand people make or break the success of Windows Mobile. :)
The problem with Misfit is it's devices display
with.dots on a round watch face without a display that shows numbers or letters.
That's not a problem. Most devices connect to your phone for detailed info anyway. There's no need to waste previous battery life and money on another tiny screen.
It's from the future...
Maybe they'll make the app not suck on Windows phone.
While I adore my Shine, I'll be the first to admit that their WP app sucks camel dong. Good job I also have an iPad mini, otherwise I'd have been reduced to watching blinkenlights.
No prior expense with Fossil products, although I do have a Skagen watch (and love it, too).
Well... We'll see what gives.
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