Amazon has acquired the maker of Roomba robot vacuum cleaner iRobot Corp for $1.7 billion in an all-cash deal as part of its latest push to grow its connected device cart products and add to its cart of smart home devices.
The announcement came less than a month after the retail giant acquired primary health care provider One Medical for $3.9 billion in cash to make inroads into the $3 trillion healthcare industry.
As part of the deal, Amazon said it will pay $61 per share, a good bargain for Amazon considering that iRobot was once traded at $197.4 at its peak during the Pandemic lock-ups.
Roomba is targeted at hygiene conscious consumers, unlike other vacuum cleaners on the market. The cost of Roomba vacuums can be as high as $1,000 to collect spatial data on households that could be valuable for companies developing smart home technology.
A statement announcing the acquisition, Amazon said that since introducing the Roomba vacuum in 2002, iRobot has continued to delight customers, saving them valuable time previously spent on household chores. The team at iRobot has developed innovative cleaning products that customers love. Dave Limp, SVP of Amazon Devices, said that saving time matters, and chores take precious time that can be better spent. Over the past many years, the iRobot team has proved 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. Customers love iRobot products and I am excited to work with the team to make it easier and more enjoyable for customers. Colin Angle, the chairman and CEO of iRobot, will remain CEO of iRobot after the deal is completed.
Amazon shares our passion for building thoughtful innovations that empower people to do more at home, and I can't think of a better place for our team to continue our mission. I am very excited to be part of Amazon and see what we can build together for customers in the years to come.