Amazon to buy Roomba-maker iRobot for US$1.7B, growing smart home device collection – National
Amazon.com Inc AMZN.O Will Acquire Robot Vacuum Cleaner Manufacturer I’m a robot Corp. IRBT.O in an all-cash deal worth about $1.7 billion, in the world’s largest online retailer’s latest effort to add to its cart smart home devices mine.
Amazon will pay $61 per share, valuing iRobot at 22% above the stock’s final closing price of $49.99.
At the peak, Roomba manufacturer trades at $197.4 as hygiene-conscious consumers invest in premium robotic vacuums during the pandemic shutdown.
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Besides sweeping away dirt, a Roomba vacuum that costs up to $1,000 collects spatial data on households that could prove valuable to companies developing so-called smart home technology. .
However, iRobot’s second-quarter revenue fell 30% due to weak demand and cancellations from retailers in North America and Europe, the Middle East and Africa as consumers rethink how they spend their money. period of rising inflation.
Big cash-rich tech companies could start M&A, analysts say, taking advantage of low valuations driven by growth pressures. Amazon owns more than $37 billion in cash and cash equivalents as of the second quarter.
Devices make up a small portion of total revenue for Amazon, which sells smart thermostats, security devices, wall-mounted smart displays, and recently launched a dog-like robot called Astro.
In the event the agreement is terminated, Amazon will have to pay iRobot a termination fee of $94 million. After the completion of the transaction, Colin Angle will remain the chief executive officer of iRobot.
Amazon is also buying primary care provider One Medical ONEM.O for $3.49 billion, expanding the e-commerce giant’s virtual healthcare offering and adding new services for the first time. Traditional doctor’s office.
(Reporting by Akash Sriram and Nivedita Balu in Bengaluru; Editing by Arun Koyyur)
