Amazon says it would pay .7billion for Vacuum maker iRobot

Amazon says it would pay $1.7billion for Vacuum maker iRobot

Amazon said on Friday that it would pay $1.7 billion to acquire iRobot, best known for its robotic vacuum cleaner, the Roomba.

By reducing the amount of time spent on cleaning tasks, the e-commerce business revealed iRobot’s goal to make its customers’ lives “easier and more pleasurable.”

“We know that saving time matters, and chores take precious time that can be better spent doing something that customers love,” said Dave Limp, senior vice president of Amazon Devices in a statement.

In an all-cash deal, Amazon will buy iRobot for $61 per share, which includes the company’s net debt of around $275.6 million. Shareholder and regulatory approval of the transaction are required. Colin Angle, CEO of iRobot, will continue in that role after the project is finished.

“Amazon shares our passion for building thoughtful innovations that empower people to do more at home, and I cannot think of a better place for our team to continue our mission,” Angle said in a statement.

Deal targets smart-home space

The purchase, according to Brian Gesuale, a technology analyst at Raymond James, makes sense for both businesses given that iRobot has developed into a significant player in the smart-home ecosystem. With around 16 million people using its devices, it also has a substantial and expanding consumer base.

“In addition, iRobot has knowledge of the footprint and design of these customers’ homes, which is crucial to the effectiveness and high customer satisfaction ratings of their robots. Although iRobot’s users are few compared to Amazon’s user base, their mobility seems to be a nice complement to Amazon’s reach “He stated in an article.

Separately, iRobot, based in Bedford, Massachusetts, released its quarterly results. Due to order cancellations and delays, revenue fell by 30%, and the company announced that 10% of revenues

Shares of the company, which have slumped sharply over the last year, jumped more than 19% in early trade on Friday.

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