According to an announcement today, Amazon (NASDAQ:AMZN) has entered into a formal merger agreement under which Amazon would purchase iRobot (NASDAQ:IRBT). iRobot has a long history of developing revolutionary cleaning solutions for the home that make life easier for customers. With each new product generation, iRobot has continued to innovate to assist customers in reclaiming critical time in their day.
IRobot’s net debt will be included in Amazon’s acquisition of the company for $61 per share in an all-cash deal valued at $1.7 B, which includes the acquisition price. Final approval by iRobot’s shareholders and governmental approvals are among the usual closing criteria. Colin Angle will continue as CEO of iRobot after Amazon Acquires iRobot. If the contract is scrapped, Amazon must pay iRobot a $94 million termination fee.
The Roomba company traded at $197.4 at the height of the pandemic lockdowns, as consumers bought expensive robot vacuum cleaners. Vacuums like the $1,000 Roomba collect more than just dirt; this data could be useful to companies working on smart home technology.
Retailers across North America, Europe, the Middle East, and Africa cut back on orders and cancellations, causing a 37% drop in sales for iRobot in the second quarter as customers adjust their spending habits in the face of growing inflation.
Because of growing demands, many predict huge technology businesses with a lot of cash will go on an M&A spree. According to its most recent quarterly financial report, Amazon had over $37B in cash and cash equivalents. For the most part, Amazon does not sell devices, although it does sell a canine-like robot named Astro, as well as other smart thermostats, security devices, and wall-mounted smart displays.
SVP of Amazon Devices, Dave Limp, remarked that they understand that saving time is important and that doing chores takes precious time that may be better spent doing something that customers enjoy. Since its inception, the iRobot team has demonstrated its capacity to redefine how people clean with very practical and innovative solutions, from cleaning when and where consumers want while avoiding frequent impediments in the home to autonomously emptying the collecting container. iRobot products are popular with customers, and Amazon’s vice president of product development, Dave, is eager to collaborate with the iRobot team to find new ways to improve the user experience as Amazon acquires iRobot.
iRobot’s Colin Angle, the company’s chairman and CEO, noted that since the company’s inception, the company’s staff had been focused on developing products that are both inventive and practical, resulting in innovations such as the Roomba and the iRobot OS. He can’t think of a better place for Amazon’s team to continue their aim of creating smart ideas that empower people to achieve more at home. As a member of Amazon, he is eager to see what the company can do for customers in the future.
After Amazon acquires iRobot, the online retail behemoth Amazon is also purchasing primary care company One Medical for $3.49B, expanding its virtual healthcare and introducing brick-and-mortar doctors’ locations.
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