Global fashion accessories business Fossil Group revealed its ambitions to add connected devices to its brand real estate with a $260 million deal to acquire Misfit.
Under the terms of the deal, outlined in a company statement, Misfit co-founder and CEO Sonny Vu will serve as president and CTO of connected devices for Fossil Group and will be a member of the company’s executive leadership team.
Misfit produces a variety of wearables that function as activity trackers and sleep monitors but look more like jewelry than a lot of other accelerometers. It also collaborates with sleep monitors Beddit and unveiled a line of wearables with Swarovski.
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Prior to Misfit, Vu was the founder and CEO of AgaMatrix, which produced the first iPhone-connected hardware medical device — a blood-glucose monitor. Sanofi got FDA approval for the iBGStar device in December 2011.
Fossil made it clear that it’s interested in the healthcare sector but whether that will focus on consumer wellness or go beyond that remains unclear.
Misfit got its start in 2011. In addition to Vu, its other co-founders included John Sculley, the former CEO of Apple and Pepsi, and Sridhar Iyengar, co-founder and former CTO of AgaMatrix.
Fossil said in the statement the acquisition will enable it to expand its addressable market with new distribution channels, new products, new brands and new enterprise partnerships in fitness, healthcare and digital entities, among others.
It also noted that Vu would spearhead “a world-class software and hardware engineering team.”
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Fossil Group CEO Kosta Kartsotis said: “We have a significant opportunity to add technology and connectivity across our platform of watches and accessories…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.”
