Amazon is buying iRobot, the maker of the well-known Roomba robot vacuum cleaners. The deal was announced this Friday: Andy Jassy’s company will pay $61 per share to iRobot, which values the deal at $1.7 billion. Amazon will also buy the vacuum cleaner maker’s debt. The brand’s best-known product, the Roomba vacuum cleaner, was launched 20 years ago.
The value offered per share is 22% above the price closing price for the vacuum cleaner manufacturer at $49.99.
If the deal is approved, Amazon will step up its investment in connected home devices. Through Echo devices, the Alexa digital assistant has gained prominence in home gadgets, even being able to control multiple appliances.
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“We know that saving time is important, and household chores take up precious time that could be better spent on something customers enjoy,” Dave Limp, senior vice president of Amazon Devices, said in a statement.
On the side of the president and CEO of iRobot, Colin Angle, it is said in a statement that “Amazon shares a passion for developing innovations that allow people to do more at home.” “I can’t think of a better place for our team to continue the mission.”
The acquisition is now subject to the usual regulatory scrutiny and has yet to be vetted by iRobot shareholders. Current CEO Colin Angle will continue as CEO of iRobot if the deal is approved.
iRobot shares soar with the announcement of this purchase by Amazon. In the first hour of trading on Wall Street, the company’s bonds up 19%, priced at $59.52.
The purchase is announced after Roomba discloses results to the market. In the second quarter of 2022, iRobot posted a loss of $63.9 million, up from a loss of $3 million a year ago. The company had revenues of $255.4 million between April and June.
This acquisition comes just over two weeks after Amazon announced the purchase of One Medical, a company operating in the healthcare field, for $3.9 billion.
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Source: Observadora
