Fossil acquires Misfit beginning wearable consolidation

Fossil Group has acquired wearable technology innovator Misfit. Last Friday Fossil Group announced that they had entered a definitive agreement to acquire Mistfit, Inc. Misfit in known for their wearable technology and fashionable devices.

In the wake of attempting to compete with Apple's smartwatch, Fossil Group is seeking ways to try and make their watch offerings more technologically savvy. The total cost of the deal as reported by WWD was 260 million dollars.

The merger is supposed to help Fossil offer their customers both traditional watch offerings and connectable devices. It's normal for apparel companies to buy technology platforms to help them develop apps for shopping and revamp their e-commerce efforts, but, it is out of the ordinary for a fashion company to acquire a tech-firm that has a fashion-related production department.

Last month, Fossil unveiled Fossil Q, their first connected accessories line.

Fossil and Misfit enter deal

“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 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.”

Fossil expects Misfit's technology to be integrated into their products by 2016. They will be able to move quickly with integrating Misfit's technology into their products because the technology runs on a battery and doesn't need to charge.

As part of the deal, Misfit founder Sonny Vu will become CTO of Fossil.

In this day and age, it is all too likely that technology will be integrated into watches, so it is likely that things will eventually consolidate. This move with Fossil helps Misfit turn into a first mover in terms of consolidation. Misfit's technology will be able to reach a much larger scale since Fossil has licenses with multiple brands including Emporio Armani, Marc by Marc Jacobs, Michael Kors, Armani Exchange, Diesel, Tory Burch, Adidas, and DKNY. It is highly possible Misfit's technology will be embedded into most of the watches for the aforementioned brands.

Between Misfit merging with Fossil, and Under Armour recently announcing their intention to buy up fitness apps, it seems that fashion and technology continue to become intertwined. What technology company is next in line to be bought up is the big question?