Watch maker Fossil has acquired Misfit Wearables for $260 million. Expected to close before the end of the fiscal year, the transaction includes Misfit's app platform, engineering team, and technology brand.
"We have a significant opportunity to add technology and connectivity across our platform of watches and accessories," Fossil CEO Kosta Kartsotis said in a statement. "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."
By purchasing Misfit, Fossil will own a technology platform "that has already solved many of the hardest problems in wearables, including battery life," it said. Misfit will continue developing activity trackers under its own brand, but Fossil will use Misfit tech across its 16 brands in 2016.
Fossil, however, is also eyeing "new distribution channels, new products, new brands, and new enterprise partnerships, including music, fitness, healthcare and digital entities."
Last month, Fossil announced the Fossil Q lineup, which includes two smartwatches and two fitness tracker bracelets.
Misfit also recently updated its collection with the Shine 2 fitness and sleep tracker (pictured), with improved touch responsiveness, faster syncing, and extended Bluetooth range.
"We are thrilled to join forces with Fossil Group to usher in the next era of wearables where elegance, beauty and long-lasting wearability are paramount," Misfit CEO Sonny Vu said.