Amazon to acquire iRobot, maker of Roomba vacuums

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

The deal will deepen Amazon’s presence in shopper robotics. Amazon made a daring wager on the house final 12 months when it unveiled the Astro dwelling robotic, a $1,449.99 gadget that is outfitted with the corporate’s Alexa digital assistant and might comply with shoppers round their houses. It additionally affords an array of sensible dwelling gadgets, like related doorbells after its 2018 acquisition of Ring, in addition to voice-activated thermometers and microwaves.

“Over many years, the iRobot team has proven its ability to reinvent how people clean with products that are incredibly practical and inventive — from cleaning when and where customers want while avoiding common obstacles in the home, to automatically emptying the collection bin,” stated Dave Limp, Amazon’s {hardware} gadgets chief, in a press release. “Customers love iRobot products — and I’m excited to work with the iRobot team to invent in ways that make customers’ lives easier and more enjoyable.”

The acquisition marks Amazon’s fourth-largest deal, behind its $13.7 billion buy of grocery chain Whole Foods in 2017, its $8.45 billion buy 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 Technology roboticists, is finest recognized for making the Roomba, a robotic vacuum launched in 2002 that may clear shoppers’ flooring autonomously. It has additionally launched robotic mops and pool cleaners. iRobot additionally has a subscription program that gives computerized tools replenishment, amongst different providers.

A vacuuming Roomba mannequin robotic is displayed at iRobot headquarters in Bedford, Massachusetts

Scott Eells | Bloomberg | Getty Images

Amazon is shopping for iRobot at a time when the robotic maker is dealing with broad headwinds. The firm reported second-quarter outcomes on Friday that confirmed a 30% decline in income from a 12 months earlier, primarily due to “unanticipated order reductions, delays and cancellations” from retailers in North America and Europe, the Middle East and Africa.

iRobot turned a Covid pandemic darling in 2020 and 2021 as shoppers spent extra time at dwelling and purchased up robotic vacuums to hold their houses clear. Its enterprise has suffered from provide chain constraints in latest quarters. iRobot stated it now has a glut of stock amid “lower-than-expected” orders from retailers.

Revenue for the second quarter got here in at $255.4 million, properly brief of the $303 million anticipated by analysts surveyed by Refinitiv. Its losses widened to 35 cents per share, adjusted. Analysts surveyed by Refinitiv had anticipated a loss of $1.55 per share.

iRobot stated it might reduce about 140 staff, or 10% of its workforce because it faces rising prices and falling income.

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

The deal will want the approval of regulators and iRobot’s shareholders.

Shares of iRobot surged 19% on Friday after they have been briefly halted following the announcement of the deal. Amazon’s inventory closed down 1%.

Correction: Amazon acquired Ring in 2018. An earlier model misstated its standing.

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


Please enter your comment!
Please enter your name here

Popular Posts

Nike (NKE) earnings Q1 2023

A lady outlets for footwear within the Nike Factory Store on the Outlet Shoppes at El Paso, in El Paso, Texas on November 26,...

What’s behind the bounce and Club stocks in the news

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Wednesday's key...

How to get a Google Stadia refund for games and hardware

Such is the downstream impact of gaming’s latest pivot away from bodily media: Google is shutting down Stadia, its beleaguered game-streaming platform,...

Apple VP leaves company after making jokes in viral TikTok video

An aerial view of Apple Park is seen in Cupertino, California, United States on October 28, 2021.Tayfun Coskun | Anadolu Agency | Getty ImagesApple's...