Fashion and watch producer Fossil Group yesterday agreed to acquire US-based wearable technology manufacturer Misfit for $260m, giving an exit to several corporate investors.
Founded in 2011, Misfit funded its first product, the Shine activity tracker, with a crowdfunding campaign the following year. Its products operate as activity, fitness and sleep trackers, and the company has also expanded into connected products and home automation.
The acquisition will give Fossil access to Misfit’s wearable technology platform, and it intends to incorporate that technology into its watch brands.
Fossil also plans to leverage that technology into music, fitness, healthcare and digital brands, and Misfit founder Sonny Vu will help the firm operate more prominently in the connected devices space.
Greg McKelvey, Fossil’s chief strategy and digital officer, said: “We fundamentally believe consumers care about both technical functionality and fashionable design. In fact, one without the other is simply not enough. With the acquisition of Misfit, Fossil Group will be positioned to win with the connected consumer.
“Our world-class design and global distribution, combined with Misfit’s technology platform, creates a significantly advantaged, multi-brand and global wearable technology business poised to drive the convergence of fashion and technology.”
Misfit had raised $63m in venture funding, most recently closing a $40m series C round featuring smartphone manufacturer Xiaomi, e-commerce company JD.com, GGV Capital, Shunwei China Internet Fund, Founders Fund, Khosla Ventures, Horizons Ventures and Norwest Venture Partners in December 2014.
The company secured $7.8m in a 2012 series A round backed by O’Reilly AlphaTech Ventures, digital media company O’Reilly Media’s corporate venturing arm, Founders Fund, Khosla, Norwest, IncTank and Max Levchin.
The series A round was followed by a $15.2m round in 2013 that included Coca-Cola, talent agency Atom Factory, O’Reilly AlphaTech, Horizons Ventures, Founders Fund, Khosla, Norwest, IncTank, Levchin, Translink Capital, TenOneTen Ventures and Nick D’Aloisio.
– Photo courtesy of Misfit, Inc.