Amazon Announces $1.7 Billion Acquisition of iRobot

Amazon (AMZN) and iRobot (IRBT) reached a $1.7 billion settlement for Amazon to amass the Roomba vacuum maker in an all-cash transaction at $61 per share. The deal, introduced on Aug. 5, 2022, would assist Amazon increase its presence available in the market for shopper robotics.

Shares of robotics producer iRobot surged over 19% in early buying and selling on Friday after the deal was introduced. If accomplished, it will mark the fourth-largest acquisition by market worth for Amazon.

iRobot specializes within the manufacturing of house robots designed to make cleansing and residential maintenance simpler for customers. The corporate manufactures of variety of autonomous gadgets together with Roomba, an autonomous house vacuum cleaner.

Amazon’s acquisition of iRobot may increase the corporate’s presence available in the market for shopper robotics, with a specific concentrate on at-home robots designed to ease customers’ lives.

“We all know that saving time issues, and chores take treasured time that may be higher spent doing one thing that prospects love,” mentioned Dave Limp, SVP of Amazon Units in a launch.

“Over a few years, the iRobot group has confirmed its capability to reinvent how individuals clear with merchandise which might be extremely sensible and creative—from cleansing when and the place prospects need whereas avoiding widespread obstacles within the house, to routinely emptying the gathering bin. Prospects love iRobot merchandise—and I’m excited to work with the iRobot group to invent in ways in which make prospects’ lives simpler and extra pleasurable.”

Final yr, Amazon unveiled its Astro house robotic that comes geared up with its Alexa voice-recognition assistant. Altogether, Amazon’s acquisition of iRobot marks its fourth-largest deal, rating simply behind its acquisitions of Complete Meals, MGM, and One Medical in recent times.

The deal is pending topic to approval from shareholders and regulators.