ROOMBA CAT TOY
Fri, August 5, 2022
Amazon on Friday announced it has entered into an agreement to acquire the vacuum cleaner maker iRobot for approximately $1.66 billion.
The company sells its robots worldwide and is most famous for the circular-shaped Roomba vacuum.
Amazon said it will acquire iRobot for $61 per share in an all-cash transaction that will include iRobot’s net debt of about $275.6 million. The deal is subject to approval by shareholders and regulators.
Upon completion, iRobot’s CEO, Colin Angle, will remain in his position.
Separately, Bedford, Massachusetts-based iRobot reported its quarterly results. Revenue plunged 30% on order reductions and delays, and the company announced it was laying off 10% of its workforce.
Haleluya Hadero, The Associated Press
Amazon's connected device cart grows with $1.7 billion deal for Roomba-maker
Fri, August 5, 2022
Prompts on how to use Amazon's Alexa personal assistant are seen as a wifi-equipped Roomba begins cleaning a room in an Amazon ‘experience center’ in Vallejo
(Reuters) - Amazon.com Inc will acquire the maker of robot vacuum cleaner iRobot Corp in an all-cash deal for about $1.7 billion, in the latest push by the world's largest online retailer to add to its cart of smart home devices.
Amazon will pay $61 per share, valuing iRobot at a premium of 22% from the stock's last closing price of $49.99.
At its peak, the Roomba maker traded at $197.4 as hygiene-conscious consumers invested in premium robot vacuum cleaners during pandemic lockdowns.
Besides sweeping up dirt, the Roomba vacuums that costs as much as $1,000 collect spatial data on households that could prove valuable to companies developing so-called smart home technology.
However, iRobot's second-quarter revenue fell 30% due to weak demand and cancellations from retailers in North America and Europe, Middle East and Africa as consumers rethink how they spend their money during rising inflation.
Analysts have said cash-rich big technology companies could get on an M&A spree, taking advantage of low valuations due to growth pressures. Amazon is sitting on cash and cash-equivalents of over $37 billion as of the second quarter.
Devices make up for a fraction of the overall sales of Amazon, which sells smart thermostats, security devices, wall mounted smart display and had recently launched a canine-like robot called Astro.
In case the deal is terminated, Amazon would be required to pay iRobot a termination fee of $94 million. On completion of the deal, Colin Angle will remain as the chief executive of iRobot.
Amazon is also buying primary care provider One Medical for $3.49 billion, expanding the e-commerce giant's virtual healthcare and adding brick-and-mortar doctors' offices for the first time.
(This story corrects to say revenue fell 30%, not 37%, in paragraph 5)
(Reporting by Akash Sriram and Nivedita Balu in Bengaluru; Editing by Arun Koyyur)
Fri, August 5, 2022
Prompts on how to use Amazon's Alexa personal assistant are seen as a wifi-equipped Roomba begins cleaning a room in an Amazon ‘experience center’ in Vallejo
(Reuters) - Amazon.com Inc will acquire the maker of robot vacuum cleaner iRobot Corp in an all-cash deal for about $1.7 billion, in the latest push by the world's largest online retailer to add to its cart of smart home devices.
Amazon will pay $61 per share, valuing iRobot at a premium of 22% from the stock's last closing price of $49.99.
At its peak, the Roomba maker traded at $197.4 as hygiene-conscious consumers invested in premium robot vacuum cleaners during pandemic lockdowns.
Besides sweeping up dirt, the Roomba vacuums that costs as much as $1,000 collect spatial data on households that could prove valuable to companies developing so-called smart home technology.
However, iRobot's second-quarter revenue fell 30% due to weak demand and cancellations from retailers in North America and Europe, Middle East and Africa as consumers rethink how they spend their money during rising inflation.
Analysts have said cash-rich big technology companies could get on an M&A spree, taking advantage of low valuations due to growth pressures. Amazon is sitting on cash and cash-equivalents of over $37 billion as of the second quarter.
Devices make up for a fraction of the overall sales of Amazon, which sells smart thermostats, security devices, wall mounted smart display and had recently launched a canine-like robot called Astro.
In case the deal is terminated, Amazon would be required to pay iRobot a termination fee of $94 million. On completion of the deal, Colin Angle will remain as the chief executive of iRobot.
Amazon is also buying primary care provider One Medical for $3.49 billion, expanding the e-commerce giant's virtual healthcare and adding brick-and-mortar doctors' offices for the first time.
(This story corrects to say revenue fell 30%, not 37%, in paragraph 5)
(Reporting by Akash Sriram and Nivedita Balu in Bengaluru; Editing by Arun Koyyur)
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