It wasn't so long ago when we reviewed the Misfit Shine and found it largely palatable, although with a few slight drawbacks. Fossil Group, must have seen the same impressive package we did, because it entered into a definitive agreement to acquire the company outright.
Fossil Group has picked up Misfit (News - Alert) for several key reasons. Misfit offers a cloud and app platform that's perfectly scalable, and thus versatile enough for any company to incorporate into its operations. It also packs in a top-notch engineering team in both hardware and software that could give Fossil Group a major edge in further development. Plus, Misfit has a well-known and recognizable brand that could give Fossil Group a leg up as part of its own superstructure.
Misfit will bring Fossil Group access to a technology platform that has addressed several major issues for wearable devices, particularly battery life. Since Fossil Group already has 16 brands to its credit, this deal will have widespread effects on the market; Fossil will surely implement Misfit tech into its other brands, upping the ante for the wearable sector. The deal also brings Fossil some established expertise: Misfit's founder, Sonny Vu, will reportedly be joining Fossil Group as president and chief technology officer of connected devices.
Fossil Group will pay $260 million in bank debt and cash on hand for the purchase, which makes this a pretty big deal. The size doesn't matter so much, though, in light of what all the company will be getting in return: new venues to deliver its current lineup of goods, new ways to improve those goods with Misfit technology, and a substantial new edge in any attempted marketing.
Edited by Kyle Piscioniere
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