Fossil is a brand you guys might associate with leather goods like bags, wallets, and watches, although recently the company has expanded their offerings by getting into the smartwatch game. Misfit on the other hand is a company known for their simple but functional fitness trackers and it might seem like both companies have nothing to do with each other, at least until now.
Fossil has recently announced that they will be acquiring Misfit and in the process, they will be paying a whopping $260 million for the company. Misfit’s CEO and co-founder Sonny Vu thinks this will help the brand as he was quoted as saying, “If you don’t have a brand it is hard to be legit in this space.”
Vu will be the new president and CTO of connected devices at Fossil once the deal closes. According to 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.”
With both companies joining forces, it will be interesting to see how they will now fare in the wearables space. Last we heard, Misfit had two new wearables in the pipeline that they are planning for CES 2016. We have to wonder with the announcement of the acquisition if those devices will still be unveiled.