The wearables market is ripe for further takeovers, the founder of Misfit told CNBC, in the wake of his company’s $260 million takeover this month.
Sourced through Scoop.it from: www.cnbc.com
Speaking to CNBC on the sidelines of London’s unBound startup conference, Misfit founder and director Sridhar Iyenga, said that his company’s sale to Texas-based clothing and accessory firm Fossil Group is part of a larger trend sweeping the wearable technology sector. “What you’re seeing is that the audience that the new technology companies can address and garner is very different than what the traditional companies can actually get a hold of,” He pointed to the exercise app company MapMyFitness, which clinched a $150 million takeover by sports group Under Armour back in 2013.
But it’s Fitbit’s successful flotation that’s had the biggest impact on the wearables market, with shares soaring in the wake of its New York Stock Exchange debut in June. The company is now worth around $4.1 billion.“What they’ve done for the industry has been really good for us. They’ve actually legitimized the fitness tracker market and because of that all of us have benefitted,”