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Fossil acquires wearable technology innovator Misfit

November 23, 2015

We are thrilled to share the groundbreaking news that one of our long-time clients and an industry leader, Fossil Group, is acquiring Misfit, a global innovator in wearable technology and stylish connected devices.
San Francisco-based Misfit is an exciting young company that’s science and technology-based, but also very design and brand driven. The company employs nearly 200 engineers and offers 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, making them an ideal partner for Fossil.
The acquisition will enable Fossil Group to expand its addressable market, offering consumers both its traditional signature timepieces and an innovative array of fashionable connected accessories, available to consumers through its portfolio of 16 brands and, of course, its strong retail network.
The Texas-based, watch and fashion accessories specialist has built a solid reputation on more than 30 years of great style, offering its unique collections of bags and accessories, as well as signature durable timepieces. This US$260 million acquisition represents a huge and well-timed investment in Fossil’s future.
“We have a significant opportunity to add technology and connectivity across our platform of watches and accessories,” said Kosta Kartsotis, chief executive officer of Fossil Group. “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.”
This convergence of fashion and technology is positioned to be the next big consumer trend. This is an exciting acquisition that brings together two innovative and entrepreneurial companies that will no doubt shake up and disrupt the marketplace with great consumer products.
In a release, Fossil outlined what this means for the company:
Own a technology platform that has already solved many of the hardest problems in wearables, including battery life.

Scale Misfit’s technology across Fossil, Skagen and a targeted portion of its portfolio of 16 brands in 2016, ultimately accelerating the company’s connected accessory roadmap.

Expand its addressable market with new distribution channels, new products, new brands and new enterprise partnerships, including music, fitness, healthcare and digital entities.

Lead in the connected devices space by harnessing the power of a world-class software and hardware engineering team spearheaded by Misfit Founder, Sonny Vu.

“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,” said Greg McKelvey, chief strategy and digital officer of Fossil Group. “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.”
Think Retail congratulates Fossil Group and we look forward to seeing the wonderful and innovative ideas and products that come out of this acquisition.
Fossil has 34 retail locations in Canada. 
For more about this dynamic brand and its place in the Canadian market, visit www.fossilcanada.ca or contact the Think Retail team.