Fossil FS4735 Grant Brown Leather Watch

Popular watch brand Fossil announced Thursday that it will acquire fitness band maker Misfit for $260 million. Fossil recently began its foray into the smart wearables space, but Misfit will give it a brand that may already be known among budget-conscious consumers, and the apps and cloud technology required to compete in the space.

Fossil highlighted several areas where Misfit can help improve its products. The company said it believes Misfit has solved problems related to poor wearable battery life, and believes it has the foundation to scale Misfit's technology "across Fossil, Skagen and a target portion of its portfolio of 16 brands in 2016." It also has plans for new brands and to distribute products through new arenas, including "music, fitness, healthcare and digital entities."

Fossil and Misfit make pretty great products, so we're excited to see where this acquisition goes. The deal is expected to close before the end of this year.