Ambitious watchmaker Fossil, like other premium watch brands, has decided they will be entering the wearable technology race full force by announcing that they have entered into a definitive agreement to purchase Misfit, Inc., an "innovator in wearable technology and stylish connected devices" co-founded by ex-Apple CEO John Scully.
The purchase of Misfit will bring to Fossil its very own scalable technology platform, including cloud services, connected apps, and experienced hardware and software engineering teams. Kosta Kartsotis, CEO of Fossil Group, had this to say about the sale
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.
Fossil Group expects the deal to close before the end of fiscal 2015, subject to all the necessary regulatory approvals. Misfit will cost Fossil $260 million including fees, and will be paid with cash on hand as well as bank debt. Sonny Vu, current CEO and another co-founder of Misfit, will serve as President and CTO of Fossil Groups connected devices division.