Watch company Mvmt (pronounced movement) is set to be acquired by Movado Group Inc. for $100 million, the companies announced Aug. 15.
Founded in 2013 by Jake Kassan, 27, and Kramer LaPlante, 26, the company offers affordable men’s watches with price points around $100. The duo launched the company by fundraising approximately $300,000 on Indiegogo.
In the five years since, the company recorded revenues of approximately $71 million, the announcement said. That’s up 18.3 percent from 2016 when Kassan and LaPlante told the Business Journal that Mvmt’s revenue was $60 million. Neither Kassan or LaPlante could be reached for comment.
The company’s products are mostly sold through its website and are found in few retailers including Nordstrom and Bloomingdales. It counts 40 employees on its payroll.
Movado said it will pay an initial $100 million and two future contingent payments that total an additional $100 million. The move sets the watchmaker to deepen its hold on the millennial market.
“The acquisition of Mvmt will provide us greater access to millennials,” said Movado chief executive Efraim Grinberg in a statement. “This announcement comes on the heels of last year’s successful acquisition of our millennial-focused brand, Olivia Burton.”
Mvmt will continue to operate under its founders who are expected to retain Mvmt’s team in Los Angeles, according to the announcement.
Manufacturing, retail and trade reporter Shwanika Narayan can be reached at email@example.com or 323-556-8351. Follow her on Twitter @shwanika.