If you are a regular Facebook (NASDAQ:FB) user you may have noticed on more than one occasion, advertisements for a watch company called MVMT. The watch fashion-brand began from a crowd-funding venture and advertised heavily across social media platforms to build its brand.
MVMT Acquisition
Now — five years on — the company has announced that global super watch creators The Movado Group (NYSE:MOV) will be acquiring it for $100 million USD.
There will also be two more installments of $100 million USD to come, further down the line.
The move means that MVMT goes under The Movado Group’s umbrella and it’s not a bad place to be; Movado designs and sells watches for global super-brands including Lacoste, Tommy Hilfiger, and Hugo Boss.
About The Watch Start-up
MVMT is a small watch company founded by Jacob Kassan and Kramer LaPlante in 2013. By 2017 (and in part thanks to its reliance on Facebook advertising) the company logged $71 million in revenue in 2017.
Its watches were always aimed at the millennial market — the online shoppers and social media guru’s who love simple chic designs made in the vein of the more expensive brands but with a far cheaper price tag. The watches are made foremostly to be stylish and are not necessarily complex feats of clock-work engineering.
The company soon became one of the first microbrands with a solid online presence.
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Movado on the Acquisition
It seems Movado was particularly interested in this millennial market of which MVMT has a firm hold of, along with how the company created such a strong business model from digital platforms. CEO of Movado Efraim Grinberg stated:
“The acquisition of MVMT will provide us greater access to millennials and advances our Digital Center of Excellence initiative with the addition of a powerful brand managed by a successful team of highly creative, passionate and talented individuals. It provides an opportunity to Movado Group’s portfolio as MVMT continues to cross-sell products within its existing portfolio, expand product offerings within its core categories of watches, sunglasses and accessories, and grow its presence in new markets through its direct-to-consumer and wholesale business,”
Both of the founders of MVMT are expected to continue leading the company, and its 40 employees in Los Angeles.
Featured Images: MVMT
