Amazon to Buy Roomba-Maker IRobot for About $1.7 Billion

Reuters2022-08-05

Amazon.comInc. is buying Roomba maker iRobotCorp. for $1.7 billion, including debt, as the online retailer adds another connected-home product to its portfolio.

Amazon on Friday 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.

iRobot shares rose 19.3% in premarket trading, while Amazon shares fell 0.8%.

iRobot introduced its Roomba vacuum in 2002. The wireless, smart-vacuum learns and maps spaces to clean dust and messes.

Roomba would join other Amazon-owned products like the Alexa virtual assistant speaker and Ring video doorbell that together give the retailer more ways to power smart homes.

Roomba was recently a featured product in Amazon’s Prime Day event for the eighth consecutive year.

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.

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Comments

  • Jess261
    2022-08-06
    Jess261
    Okay
  • gni
    2022-08-05
    gni
    iWanna! 
  • JasmineT
    2022-08-05
    JasmineT
    Ok
  • Pinky310
    2022-08-05
    Pinky310
    [smile] 
  • ScarletK
    2022-08-05
    ScarletK
    Nice
  • Fred Peh
    2022-08-05
    Fred Peh
    They are diversifying their core business to others. Good move indeed.
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