Watchmaker Fossil has acquired smart wearables maker Misfit for $260 million. Fossil plans to integrate Misfit’s technology into its traditional watches to get a firm footing in the smartwatch space.
Misfit is known for its good looking and rather affordable range of fitness tracking wearables. These include the likes of Shine, the recently launched Shine 2, and Flash Link and Flash. In September, Misfit made its debut in India by launching Shine, Flash, and the Flash Link. Prices for these wearables start from Rs 1,999 and are exclusively available via Snapdeal.
Besides its own brand of watches, Fossil also produces watches for brands like Emporio Armani, Burberry, Michael Kors, and DKNY to name a few. With this acquisition, Fossil will be able to make inroads into the rapidly growing wearable space.
“If you don’t have a brand it is hard to be legit in this space,” Sonny Vu, chief executive and co-founder of Misfit told WSJ. Vu is set to become the president and chief technology officer of connected devices for Fossil before the end of the year.
This deal will help both the companies with Misfit finding it difficult to compete against rivals like Fitbit, Nike and Xiaomi to name a few. Fossil sells around 50 million watches a year, and Misfit will be able to leverage this brand power.
Apple’s entry into the wearable space has pushed traditional watch makers to sit up and take notice of the space. Swatch is said to be working on smartwatches, and Tag Heuer recently teamed up with Intel and Google to launch a luxurious Android Wear smartwatch, priced at $1,500.