Swiss watch manufacturer Movado Group has signed a definitive agreement to acquire MVMT Watches, the owner of global lifestyle brand MVMT, for an initial payment of approximately $100m.

Of the total value of the transaction, around $85m net of tax benefits is expected to be generated from the acquisition and two future contingent payments.

Established in 2013, MVMT offers watches, sunglasses and other accessories through its direct-to-consumer business model across more than 160 countries globally.

The company’s products are marketed through its global e-commerce platform as well as at select retailers such as Nordstrom and Bloomingdales in the US.

The addition of the millennial watch brand to its network will allow Movado to accelerate its digital strategy, as well as offer a global growth opportunity to its portfolio.

It will also expand Movado’s exposure to aspirational and millennial consumers through MVMT’s watches, sunglasses and accessories.

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Movado Group chairman and chief executive officer Efraim Grinberg said: “Today’s announcement marks an important milestone for Movado Group.

“The acquisition of MVMT will provide us greater access to millennials and advances our Digital Center of Excellence initiative.”

“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.

“This announcement comes on the heels of last year’s successful acquisition of our millennial-focused brand, Olivia Burton.

“We believe significant growth opportunity lies ahead for MVMT through category, channel and geographic expansion by leveraging our scale and infrastructure.”

MVMT will also cross-sell products from its portfolio, expand product offerings across various categories such as watches, sunglasses and accessories, as well as increase its presence in new markets through its direct-to-consumer and wholesale business.

MVMT will also accelerate its expansion in untapped categories, channels and geographies through Movado’s global infrastructure and distribution network.

MVMT will continue to operate under the leadership of founders Jake Kassan and Kramer LaPlante, who are expected to retain MVMT’s talented team in Los Angeles, US.

The transaction is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act and is expected to close by 1 October.