Amazon to buy Roomba maker iRobot
Amazon is buying iRobot for $1.7 billion, the companies announced Friday morning.
Why it matters: The acquisition is Amazon's fourth-largest ever and reflects the tech giant's ambitions to entrench itself inside homes with smart devices.
Details: The $1.7 billion all-cash deal includes iRobot's net debt.
- iRobot investors will receive $61 a share, a 22% premium to iRobot's closing price on Thursday.
- Current iRobot CEO Colin Angle will remain in his role after the acquisition is complete.
The big picture: The acquisition shores up iRobot as it struggles to grow.
- The company's second quarter revenue fell by about 30% from from the same time last year, it reported today.
- Alongside the results, iRobot also announced that approximately 140 people would be losing their jobs, or 10% of its workforce.
Be smart: Amazon has always kept an eye on Roomba.
- This year's Prime Day sales event was the eighth consecutive to feature the product prominently.
- The Roomba made up 89% of iRobot's revenue, as of earlier this year.
Our thought bubble, via Axios' Margaret Harding McGill: Amazon, moving right along from its recently announced nearly $4 billion purchase of One Medical, is clearly not looking over its shoulder to see whether federal antitrust regulators will try to stop its acquisition spree.
What to watch: Shareholder approval of the deal. And any ongoing privacy issues.
- Amazon's existing home products, including its Ring security cameras, Alexa devices and Astro home robot, have already raised privacy concerns.