Amazon to Acquire iRobot for $1.7 Billion

Amazon to Acquire iRobot for $1.7 Billion

Amazon (NASDAQ: AMZN), announced that it will be acquiring iRobot for USD61 per share in an all-cash deal that values the consumer robots company at USD1.7 Billion. The agreement, which is pending approval from shareholders and regulators, has the ability to expand Amazon’s robotics division.

Last year Amazon unveiled its home robot, Astro, a USD1,500 device that features the company’s Alexa digital assistant. Furthermore, Amazon has also introduced several smart home devices, such as Ring doorbells, microwaves, and voice-activated thermometers.

“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,” said Dave Limp, Amazon’s hardware devices chief, in a statement. “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 deal will be Amazon’s fourth-largest transaction, following the acquisition of Whole Foods, MGM, and primary-care provider One Medical.

iRobot is best known for creating the Roomba, an autonomous robot vacuum that was launched in 2002. Additionally, it has also manufactured robotic mops and pool cleaners. The company’s shares rose almost 20% during pre-market trading Friday following the news.

“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,” said Colin Angle, chairman and CEO of iRobot. “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.”

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