Watch manufacturer Fossil to acquire fitness wearable company Misfit

Smartwatches and wearables have enjoyed a significant amount of attention over the past couple of years. With the advent of sensors on wearable devices, and prices continuing to fall, the adoption of wearable devices has risen phenomenally. Last month, Swiss luxury watchmaker Frederique Constant launched its range of smartwatches in India. Priced at Rs 60,000 and more, sales of the horological smartwatch, as it is called, were expected to be quite sedate. Similarly, TAG Heuer, Breitling and several other watch manufacturers have indicated that they would be looking at the smartwatch space very closely. According to a report in the Wall Street Journal, the Fossil Group has agreed to buy wearable fitness tracker company Misfit for $260 million. Misfit is cofounded by ex-Apple CEO John Sculley. Since the advent of Xiaomi and companies such as Micromax in the fitness band business, a watchmaker such as Fossil would see immense potential in a wearable with a focus on style, something that Misfit focusses on. Interestingly, Xiaomi invested in Misfit last December. Certainly, luxury watchmakers would keep an eye out for startups in the fitness wearable space that make lucrative and strategic acquisitions. The capability to offer fitness data makes it a natural extension for a watchmaker.