Watchmaker Fossil has acquired Misfit Wearables. The company announced the acquisition of the connected wearable maker and confirmed that the purchase price was $260 million (approximately Rs. 1,700 crores) including transaction costs, which will be funded through a combination of cash on hand and bank debt. The company expected to complete the acquisition before the end of fiscal 2015; though notes that this is subject to customary closing conditions and regulatory approval.
The watchmaker last month entered the smartwatch segment with Android Wear-powered watches alongside other connected wearables. Now, the company can be expected to refresh its lineup with technology from Misfit.
"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," Fossil said in a press statement. The company also announced Sonny Vu, Co-Founder and CEO of Misfit, will serve as president and chief technology officer of connected devices for the Fossil Group.
The acquisition will allow Fossil Group to use Misfit's technology across Fossil and Skagen product lines, among others. The company is expected to strengthen its connected device portfolio.
Commenting on the acquisition, Kosta Kartsotis, chief executive officer of Fossil Group 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."
Tag Heuer earlier this month unveiled its Android Wear powered smartwatch 'Connected'. The connected device segment is set to heat up with Switzerland-based Swatch also plans to enter smartwatch segment with its offering.