Luxury watchmaker Fossil Group has announced the acquisition of Misfit Wearables for $260 million, a major deal that marries traditional wearables with modern fitness trackers based in the Silicon Valley.
The deal marks a change for Fossil Group, who says that it will begin incorporating Misfit's technology into its watches as early as next year.
Misfit was founded in 2011, and since then it has offered cheap yet stylish fitness monitors such as the Shine 2, which is able to last as long as six months on one battery. The company has also begun offering things like sleep monitors and smart lightbulbs. While it was able to make partnerships with companies like Speedo, it was unable to overtake the likes of Fitbit or Nike, who both are major players in the fitness tracking market.
"We have a significant opportunity to add technology and connectivity across our platform of watches and accessories," said Kosta Kartsotis, CEO of Fossil Group, in a statement. "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."
Apple having released the Apple Watch may have been a major wake-up call for traditional watchmakers, but with the likes of Tag Heuer getting into smartwatches and Fossil having acquired Misfit, it's clear that watchmakers aren't taking the competition sitting down and are ready to embrace the technology world more than they ever have before.
Only time will tell how the acquisition impacts Fossil and what Fossil smartwatches that include Misfit technology look like, however the marriage is sure to be interesting.
Via: The Verge
