Today the watch-making company, named Fossil has announced that they would buy the famous wearable and sleep tracker making company, named Misfit. Misfit took the health tracking platform to a different level, the contract is settled at $260 million. The CEO of Misfit has said that Misfit has found their place as Fossil’s CTO.
Misfit is the developer of the devices like the Shine, it is a wearable fitness device and also a sleep tracker which you can get only for $99, the company says that the device has a battery life for six months. A month ago in October the company released an updated version of its tracker, Shine. They have also lowered the price of its wearable, the Flash which only costs $29.
For quite a some time, the wearable and the fitness tracking market has become very crowded. There are many competitors like Fitbit, but they are also offering a similar wearable tracker for the same price. There is also Tag Heuer who is trying to join in with its new smartwatch which is worth $1500.
Being a part of the announcement, Fossil Group said that they are offering customers traditional timepieces and designer connected accessories. Greg McKelvey, who is the company’s chief strategy and the digital officer said in an interview with WSJ that they will continue making Misfit devices.
Although it is very difficult to say that what will happen to the Misfit’s tracking platform partners, named Pebble. With Misfits assistance Peeble became an activity tracker company from just a smart watch, they achieved it by showing us its potential as a platform. Misfit also has The Misfit Minute which is an application for Apple Watch.
Although being the controller of this joint venture Fossil could always decide, to somehow isolate the Misfit Platform to Fossil watches.
In all Misfit has raised $64.4 million throughout its three rounds of funding, last year they raised the maximum amount around $40 million. Their investors include Xiaomi, Founders Fund and GGV Capital. According to the statement from the company, the contract will be concluded with cash and bank debt.
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