Monday, October 2, 2023
HomeUncategorizedAmazon buys Roomba maker iRobot for $1.7 billion in cash

Amazon buys Roomba maker iRobot for $1.7 billion in cash

TL;DR: Amazon said in a surprise announcement that it has agreed to acquire Roomba maker iRobot. The all-cash deal is valued at about $1.7 billion, or $61 per share, a 22% premium to iRobot’s closing price of $49.99 on Thursday.

This deal gives Amazon a foothold in robotics. Last year, the e-commerce giant launched a domestic home robot called Astro, designed to be used as a mobile security camera, entertainment center and communication tool.

The Wi-Fi-connected Snapdragon-powered robot has stereo speakers, dual cameras, a 10-inch touchscreen, and even a USB-C port. Astro is available for purchase by invitation only and will cost you $999.99 during the ongoing introductory period. After that, expect to pay $1,449.99 for an opportunity that not everyone thinks is suitable for a mainstream audience.

Amazon has also invested in other gadgets designed to make life easier, such as the doorbell and its array of Alexa speakers. However, Amazon’s acquisition of iRobot is much larger than Ring’s and is one of the biggest moves yet by new CEO Andy Jassy, ​​who replaced founder Jeff Bezos a year ago. Bezos) at the helm.

In fact, the iRobot deal is Amazon’s fourth-largest to date, behind Whole Foods Market, MGM, and One Medical at $13.7 billion each , $8.45 billion and $3.9 billion.

Amazon Devices senior vice president Dave Limp said they are excited to work with the iRobot team to invent in ways that make customers’ lives easier and more enjoyable.

iRobot by Colin Angle, Rodney Brooks and Helen Greiner, who worked at the MIT Artificial Intelligence Laboratory. Its first consumer-oriented robotic vacuum cleaner came out in 2002, and the company went public in 2005. iRobot also has a line of mopping robots for hard-surface floors and has added several features to its vacuums, including automatic bin emptying.

As is customary, the transaction will be subject to customary closing conditions, including shareholder and regulatory approvals. We’re told that iRobot’s Colin Angle will remain CEO post-acquisition.

Image source: Kindel Media



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