Amazon buys iRobot, the maker of the Roomba, for $1.62 billion

Amazon will buy iRobot, maker of the popular Roomba vacuum cleaner, for $1.

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NewsEditor
05 August 2022 Friday 14:56
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Amazon buys iRobot, the maker of the Roomba, for $1.62 billion

Amazon will buy iRobot, maker of the popular Roomba vacuum cleaner, for $1.65 billion, about 1.62 billion euros at current exchange rates, the e-commerce giant announced Friday.

The company will pay $61 a share, at a 22% premium over the current price of iRobot shares, which were up 20% at the market open. The operation will be done in cash and includes the debt carried by the company. The purchase aims to "invent ways to make customers' lives easier and more enjoyable," said Dave Limp, senior vice president of Amazon Devices. For example, increasing the synergy between Alexa voice systems and device control.

"For many years, the iRobot team has proven its ability to reinvent the way people clean with products that are incredibly practical and ingenious," said Limp. iRobot gives Amazon a household name in home cleaning devices, which can give it an edge over its own designs.

iRobot was one of the companies that saw a spike in sales during the pandemic, as homebound families looked for solutions to keep their homes clean. But like many after the covid era, iRobot has seen demand decline, with its latest accounts falling short of analyst forecasts. Its shares fell 24% so far this year before the deal was announced.

The closing of the transaction is subject to customary conditions, including iRobot shareholder approval and relevant regulatory clearances, the company said, noting that once the transaction is completed, Colin Angle will remain as iRobot CEO. . "Amazon shares our passion for creating innovations that empower people to do more at home, and I can't think of a better place for our team to continue our mission."

The purchase comes just a couple of weeks after Amazon snapped up medicine firm One Medical for about $3.8 billion.

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