iRobot's $1.7 billion deal valued at $1 bn

44
2
iRobot's $1.7 billion deal valued at $1 bn

Amazon is acquiring $61 a share of iRobot, an all-cash deal that values the Roomba maker at $1.7 billion, the companies announced on Friday.

The deal will increase Amazon's presence in consumer robotics. Amazon unveiled the Astro home robot last year when it unveiled its $1,500 device that is equipped with the company's Alexa digital assistant and can follow consumers around their home. It has also launched an array of smart home devices, like Ring doorbells, as well as voice-activated thermometers and microwaves.

Over the past 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 to avoid common obstacles in the home, to automatically emptying the collection bin, said Dave Limp, Amazon's hardware devices chief. Customers love iRobot products and I am excited to work with the team to make it easier and more enjoyable for customers. The acquisition marks Amazon's fourth-largest deal, as well as its $13.7 billion purchase of Whole Foods in 2017, its $8.45 billion acquisition of MGM last year, and its $3.9 billion acquisition of Boutique Primary Care provider One Medical, announced last month.

iRobot, founded in 1990 by the Massachusetts Institute of Technology roboticists, is best known for making the Roomba, a robotic vacuum launched in 2002 that can clean floors autonomously. Since then it has introduced robotic mops and pool cleaners. iRobot also has a subscription program that offers automatic equipment replenishment, among other services.

Colin Angle, the CEO of iRobot, will continue to run the company after the deal closes.

After they were briefly stopped after the announcement of the deal, the shares of iRobot surged more than 18% in premarket trading. Amazon's stock was down about 0.5%.