Fossil Group Buys Well being-Monitoring Wearable Startup Misfit For $260M
Watchmaker Fossil Group stated right now it might purchase Misfit, which creates numerous wearable and sleep trackers along with a well being-monitoring platform, for $260 million. Sonny Vu, CEO of Misfit, will function Fossil’s CTO.
Misfit makes units just like the Shine, a wearable health and sleep tracker that prices $ninety nine that the corporate says has a 6-month battery life. The corporate got here out with an up to date model of its Shine tracker in October just some weeks in the past. Misfit additionally has a decrease-priced wearable, the Flash, that prices $29.
To make certain, the wearable and health-monitoring market has grow to be an more and more crowded market. There are many rivals like Fitbit, which additionally gives equally priced exercise trackers. Even Tag Heuer, with a $1,500 smartwatch, is beginning to get into the related gadget market. Misfit’s pitch was that it was extra aesthetically pleasing, and with the Fossil model it in all probability provides the startup somewhat extra visibility.
Fossil Group, as a part of the announcement, stated that it might supply shoppers conventional timepieces and trendy related equipment. In an interview with the WSJ, the corporate’s chief technique and digital officer Greg McKelvey stated Fossil Group would proceed making Misfit’s wearable units.
It’s robust to say the place this lands the Misfit monitoring platform that integrates with different units, just like the Pebble. With the addition of Misfit, the Pebble primarily went from only a smartwatch to an exercise tracker, displaying a number of the potential of the service as a platform. Misfit additionally has an app for the Apple Watch, the Misfit Minute.
That is probably alluded to within the announcement as a part of a “multi-model” technique, however it nonetheless doesn’t supply an outright assertion on the topic.
“Our world-class design and international distribution, mixed with Misfit’s know-how platform, creates a considerably advantaged, multi‐model and international wearable know-how enterprise poised to drive the convergence of trend and know-how.”
And right here’s what’s stated within the firm’s earnings launch:
The Firm believes the acquisition supplies the chance to combine Misfit’s software program and hardware platforms within the subsequent era of related equipment, additional advancing Fossil Group’s related equipment initiative.
In fact, Fossil might all the time determine to easily isolate the Misfit platform to Fossil watches, turning it right into a walled backyard of types just like the Apple Watch.
In complete, Misfit raised $sixty four.four million throughout three rounds of funding — most lately a $forty million spherical in October final yr. Buyers embrace GGV Capital, Xiaomi, and Founders Fund. The deal will probably be achieved with a mixture of money and financial institution debt, in line with the announcement.