Watchmaker Fossil Group has agreed to acquire Misfit, a wearable fitness tracker producer based in the US and Vietnam, for US$260 million.
Vietnamese-American Sonny Vu, co-founder and CEO of Misfit, said in a statement: "We are thrilled to join forces with Fossil Group to usher in the next era of wearables where elegance, beauty and long-lasting wearability are paramount."
Vu will be a member of Fossil's executive leadership team and will serve as president and chief technology officer of connected devices after the deal closes, which Fossil expects by the end of this year.
Texas-based Fossil makes watches and jewelry using its namesake brand as well as Skagen and Zodiac. It also makes watches for other brands, including Michael Kors, Diesel and DKNY.
The company aims to scale Misfit’s technology across its products next year, while continuing to develop activity trackers under the Misfit brand.
"We have a significant opportunity to add technology and connectivity across our platform of watches and accessories," Kosta Kartsotis, CEO of Fossil Group, said in a statement.
Misfit makes devices like the Shine, a wearable fitness and sleep tracker that costs $99 that the company says has a six-month battery life. Starting in Vietnam and the US at the same time in 2011, the company now offers a range of activity trackers priced between $20 and $100.
The purchase of Misfit will help Fossil further compete with companies like Fitbit, Apple and Jawbone, US-based tech product review website CNET says.