Fossil to acquire wearable startup Misfit for $260 million

There's lots of competition in the wearable space and today we see Fossil and Misfit combining forces.

Misfit is known for making low-cost, long-lasting, stylish wearables while Fossil is getting ready to launch its Android Wear smartwatch.

CNET posted details that Fossil will acquire Misfit for a reported $260 million prior to the end of 2015. While Misfit products are popular thanks in large part to low prices, there is serious competition in the wearable space so working with Fossil makes sense.

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Kosta Kartsotis, chief executive officer of Fossil Group, stated, "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 plans to include Misfit's technology into watches while also continuing to produce Misfit's own trackers. Misfit will get the benefit of Fossil's distribution and manufacturing while Fossil wil be able to incorporate Misfit's technology.

Fossil will provide employment offers to all Misfit employees, about 220 people. Sonny Vu, chief executive and co-founder of Misfit, will become president and chief technology officer of connected devices for Fossil Group.