Amazon buys I Robot for $1.7 billion in cash
The definitive merger agreement between Amazon (NASDAQ:AMZN) and iRobot (NASDAQ:IRBT) has been announced as a result of which Amazon will acquire iRobot.
Amazon announced on Friday that it had reached an agreement to buy the maker of vacuum cleaners, iRobot, for nearly $1.7 billion, adding just another business to its portfolio of smart home products despite broader worries about its market dominance.
Including iRobot’s net debt, Amazon will purchase iRobot for $61 per share in an all-cash deal valued at about $1.7 billion. The transaction’s completion is contingent on the standard closing requirements, which include shareholder and regulatory clearances for iRobot. CEO, Colin Angle will continue to lead iRobot after it is finished.
The company is best known for its circular Roomba cleaner, which would include Alexa, the robot Astro, Ring security cameras, and other smart home features on the list of services Amazon offers.
The connected Roomba from iRobot travels around houses floors several times a week or day mapping the areas it cleans. A front-facing, AI-powered camera that has reportedly recognized more than 43 million things in people’s homes has been added by iRobot to its most recent model, the j7. For navigation, other versions use a low-resolution camera that is pointed upward.
” CEO Colin Angle said “Since we started iRobot, our team has been on a mission to create innovative, practical products that make customers’ lives easier, leading to inventions like the Roomba and iRobot OS “Amazon shares our passion for building thoughtful innovations that empower people to do more at home, and I cannot think of a better place for our team to continue our mission. I’m hugely excited to be a part of Amazon and to see what we can build together for customers in the years ahead.”
Amazon has since purchased Kiva Systems a decade ago, to actively entered the robots market, but its Amazon Robotics subsidiary is only interested in its warehouse/fulfillment play. With the release of Astro, a friendly robot that lacks the Roomba’s one goal, the business has more recently taken moves into the home. Looks like Amazon got a nice deal for i Robot as in the face of rising competition, iRobot recently revealed a 30 percent revenue loss.