Nov. 13, 2015, 9:36 AM
- Along with its Q3 results, watch/handbag maker Fossil (FOSL -29%) is buying fashion-oriented activity tracker maker Misfit for $260M. Fitbit (NYSE:FIT) has fallen below $30 in response.
- Fossil, which did 2014 sales of $3.5B, plans to "scale Misfit's technology across Fossil, Skagen and a targeted portion of its portfolio of 16 brands in 2016," and declares the purchase will "expand its addressable market with new distribution channels, new products, new brands and new enterprise partnerships, including music, fitness, healthcare and digital entities."
- Misfit CEO Sonny Vu will become the president and CTO of Fossil's connected devices unit. Fossil will finance the purchase using both cash and debt. (Misfit's products)
- Fossil/Misfit faces competition not only from Fitbit, but also Nike (FuelBand), Apple (Watch), Samsung (Gear), Jawbone, Xiaomi, and others. IDC estimates Fitbit had 24.3% of the Q2 wearables market, Apple 19.9%, Xiaomi 17.1%, and no one else more than 4%. Industry shipments rose an estimated 223% Y/Y to 18.1M.
- Fossil has nosedived in response to its Q3 sales miss and soft Q4 guidance. Oppenheimer has downgraded to Market Perform.
- Update: Fitbit has also downsized its planned secondary offering to 17M shares, and priced it at $29.
Jan. 10, 2012, 8:24 AM
Fossil (FOSL) acquires Skagen Design for $225M in a cash deal expected to be finalized next month. As part of the agreement, the sellers can receive up to 100K additional shares of FOSL stock if the firm meets net sales targets of Skagen-branded products.| Jan. 10, 2012, 8:24 AM