August 8, 2022
Amazon continues to fill the connected-home “vacuum,” as the online retailer announced plans on Friday, August 5, to buy Roomba-maker iRobot for $1.7 billion, including debt, reports The Wall Street Journal.
The wireless, smart-vacuum learns and maps spaces where it sucks up dust and messes. Roomba was recently a featured product in Amazon’s Prime Day event for the eighth consecutive year
Amazon said it is paying $61 a share for iRobot in an all-cash deal. The price represents a 22% premium to iRobot’s closing price of $49.99 on Thursday.
iRobot Chief Executive Colin Angle will remain in his position upon completion of the acquisition, which requires approval from shareholders.
Roomba would join other Amazon-owned products like the Alexa virtual assistant speaker and Ring video doorbell, which, together, give the retailer more ways to power smart homes.
IRobot would be the fourth-largest acquisition by Amazon—ranking behind the 2017 acquisition of Whole Foods for $13.7 billion, an $8.5 billion purchase of movie studio MGM in March, and last month’s agreement to buy 1Life Healthcare for $3.9 billion.
Research contact: @WSJ