Fossil Group Inc is set to acquire wearable tech-maker Misfit Inc for $260m, giving the watch firm a platform in wearable technology. Whilst apparel firms usually buy tech platforms to help with logistics or e-commerce, it is rare for a fashion company to acquire a technology firm that is already fashion-related on its product said. Fossil has said its purchase will allow the company to offer consumers both traditional watches and connected devices.
Kosta Kartsotis, Chairman and Chief Executive Officer said, “We know the customers are interested in technology and Fossil Q allows us to bring together fashion and function in the assortment. The reaction has been very positive not only to the product, but the entire platform including the software application developed for users.” Misfit “will allow us to combine our key competitive advantages in design, sourcing, distribution and powerful brands with a business that is already a recognized player in technology infused accessories and [that] possesses a world-class software and hardware engineering team to stay ahead of the emerging technology trends.”
Fossil’s acquisition of Misfit will put them in a unique position to lead the merging of fashion and technology and accelerates their capability to compete in the connected accessory space.