Amazon Announces $1.7 Billion Acquisition of iRobot

In a $1.7 billion deal, Amazon (AMZN) and iRobot (IRBT) agreed that Amazon will pay $61 per share in cash to purchase the Roomba vacuum manufacturer. The agreement, which was made public on August 5, 2022, will enable Amazon to increase its market share in the consumer robots sector.

Following the announcement of the purchase, iRobot’s stock price increased by almost 19% in early trade on Friday. If successful, it would rank as Amazon’s fourth-largest acquisition by market value.

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House robots made by iRobot are produced with a focus on easing customer cleaning and home maintenance. The business manufactures a variety of autonomous gadgets, notably the robotic vacuum cleaner Roomba.

With a focus on at-home robots made to make consumers’ lives easier, Amazon’s acquisition of iRobot might increase the company’s footprint in the consumer robotics sector.

In a press release, Dave Limp, SVP of Amazon Devices, stated that “we recognize that saving time important, and chores occupy precious time that can be better spent doing something that customers love.”

The iRobot team has demonstrated over many years its capacity to redefine how people clean with devices that are incredibly useful and inventive—from cleaning when and where consumers want while avoiding frequent impediments in the home, to autonomously emptying the collecting container. Customers adore iRobot products, and I’m eager to collaborate with the team to design things that will improve and simplify their lives.

Amazon introduced its voice-recognition assistant Alexa-enabled Astro household robot last year. Just behind its previous acquisitions of Whole Foods, MGM, and One Medical, Amazon’s acquisition of iRobot is the company’s fourth-largest deal overall.

IRBT, AMZN

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