Amazon to acquire maker of Roomba vacuum for roughly $1.7 billion

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A vacuuming Roomba mannequin robotic is displayed at iRobot headquarters in Bedford, Massachusetts
Scott Eells | Bloomberg | Getty Photos

Amazon is buying iRobot for $61 a share, an all-cash deal that values the Roomba maker at $1.7 billion, the businesses announced Friday.

The deal will deepen Amazon’s presence in client robotics. Amazon made a daring wager on the area final 12 months when it unveiled the Astro house robotic, a $1,500 gadget that is geared up with the corporate’s Alexa digital assistant and might observe customers round their house. It is also launched an array of good house gadgets, like Ring doorbells, in addition to voice-activated thermometers and microwaves.

“Over a few years, the iRobot workforce has confirmed its capability to reinvent how individuals clear with merchandise which are extremely sensible and ingenious — from cleansing when and the place clients need whereas avoiding frequent obstacles within the house, to robotically emptying the gathering bin,” stated Dave Limp, Amazon’s {hardware} gadgets chief, in an announcement. “Clients love iRobot merchandise — and I am excited to work with the iRobot workforce to invent in ways in which make clients’ lives simpler and extra satisfying.”

The acquisition marks Amazon’s fourth-largest deal, behind its $13.7 billion purchase of grocery chain Entire Meals in 2017, its $8.45 billion purchase of movie studio MGM final 12 months, and its $3.9 billion acquisition of boutique primary-care supplier One Medical, introduced final month.

iRobot, based in 1990 by Massachusetts Institute of Expertise roboticists, is finest recognized for making the Roomba, a robotic vacuum launched in 2002 that may clear customers’ flooring autonomously. Since then, it has launched robotic mops and pool cleaners. iRobot additionally has a subscription program that gives automated tools replenishment, amongst different companies.

Amazon is shopping for iRobot at a time when the robotic maker is going through broad headwinds. The corporate introduced second-quarter outcomes on Friday that confirmed a year-over-year decline in income, primarily because of “unanticipated order reductions, delays and cancellations” from retailers in North America and Europe, the Center East and Africa.

iRobot stated it might minimize about 140 workers, or 10% of its workforce.

As soon as the deal closes, iRobot CEO Colin Angle will proceed to run the corporate.

Shares of iRobot surged greater than 18% in premarket buying and selling, after they had been briefly halted following the announcement of the deal. Amazon’s inventory was down about 0.5%.

WATCH: Amazon to acquire One Medical for roughly $3.9 billion

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