Amazon Announces $1.7 Billion Acquisition of iRobot
Amazon (AMZN) and iRobot (IRBT) has reached a $1.7 billion deal for Amazon to acquire the Roomba vacuum cleaner in an all-cash deal at $61 per share. The deal, announced on August 5, 2022, would help Amazon expand its presence in the consumer robotics market.
Shares of robotics maker iRobot jumped more than 19% in early trading on Friday after the deal was announced. If completed, it would be the fourth largest acquisition by market value for Amazon.
Key points to remember
- Amazon announced that it will acquire iRobot for $1.7 billion on August 5, 2022.
- The deal would help Amazon expand its presence in the consumer robotics market.
- The acquisition is pending shareholder and regulatory approval.
iRobot specializes in producing home robots designed to make home cleaning and maintenance easier for consumers. The company makes many self-contained devices, including Roomba, a self-contained household vacuum cleaner.
Amazon’s acquisition of iRobot could expand the company’s presence in the consumer robotics market, with a particular focus on home robots designed to make consumers’ lives easier.
“We know that saving time is important and that household chores take up valuable time that can be better spent doing something customers love,” Dave Limp, SVP of Amazon Devices said in a statement.
“For many years, the iRobot team has proven its ability to reinvent the way people clean with incredibly convenient and inventive products, cleaning when and where customers want it while avoiding common obstacles around the home. , automatic emptying of the collection tray. Customers love iRobot products and I’m excited to work with the iRobot team to invent ways to make customers’ lives easier and more enjoyable.
Last year, Amazon unveiled its Astro home robot equipped with its Alexa voice-recognition assistant. In total, Amazon’s acquisition of iRobot marks its fourth-largest transaction, ranking just behind its acquisitions of Whole Foods, MGM and One Medical in recent years.
The deal is pending subject to shareholder and regulator approval.
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